aahuja1 Posts: 7, Reputation: 1 New Member #1 Oct 16, 2007, 08:49 PM
How to calculate stock dividends shares and cash dividends amounts
You owe 600 shares of Blueco, Inc. common stock and that you currently receive cash dividends of \$.42 per share per year

A. If Blueco Inc declared a 5% stock dividend, how many shares of commons stock would you receive as a dividend?

B. Calculate the cash dividend per share amount to be paid after the stock dividend that would result in the same total cash dividend (as was received before the stock dividend)

C. If the cash dividend remained at \$.42 per share after the stock dividend, what per share cash dividend amount without a stock dividend would have accomplished the same total cash dividend?

D. Why would a company have a dividend policy of paying a \$.10 per share cash dividend and issuing a 5% stock dividend every year?

I think the answer to A is 30 shares.
I need help with the rest of it though. Any thoughts?
 Hermansherman Posts: 37, Reputation: 4 Junior Member #2 Oct 17, 2007, 05:35 AM
A. Your answer to A is correct 5% of 600 shares is 30 shares.
 picerne2008 Posts: 1, Reputation: 1 New Member #3 Feb 28, 2008, 04:56 PM
How Do You Calculate A Stock
 morgaine300 Posts: 6,561, Reputation: 276 Uber Member #4 Feb 28, 2008, 10:25 PM
 morgaine300 Posts: 6,561, Reputation: 276 Uber Member #5 Feb 28, 2008, 10:28 PM
B. If you need to figure out how to make the dividend total the same, first you need to know the total dividend that you are receiving now. You know how shares you already owned and how much in dividends per share you were getting. So how much in total were you getting? Then take that and divide by the new number of shares (with A being correct) to see what that comes out to per share. Any time you want something PER something (dividends per share), it's a division in that order.

C. I'm not quite sure what the heck they're asking. No wonder you're confused.

And D - see if you can take a crack at that.
 daffyduc1 Posts: 1, Reputation: 1 New Member #6 Oct 9, 2011, 08:41 AM
I own 300 shares of International Paper and I receive \$78.75 as a dividend. I cannot figure out how they compute that payout figure? For example, I would like to know what dividend I would receive if I bought another 100 shares, 200 sharers etc... Thanks

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