Question

If the company I invest in issues a stock dividend at 5%, the value of my original shares are ___________ by a factor ___________. I am ___________ since I have an additional ___________ of value in the new shares.

Answer 1

Answer:

(a) Reduced / lowered

(b) 0.95

(c) Gain / better off

(d) 0.04

If the company I invest in issues a stock dividend at 5%, the value of my original shares are _____(a)______ by a factor _____(b)______. I am ______(c)_____ since I have an additional _____(d)______ of value in the new shares.

Explanation:

(a) When dividents are issued stock price fall

(b) there will be a fall of 1 / 1.05

(c) Even there is a fall in price but you got benefit of divident

(d) 0.05 / 1.05