The Turtle Cave Currently Has 15,000 Shares of Stock Outstanding

question 94

Multiple Choice

The Turtle Cave currently has 15,000 shares of stock outstanding that sell for $31 per share. Assume no market imperfections or tax effects exist. What will be the new share price if the firm declares a stock dividend of 10 percent?

• A) $32.17
• B) $28.18
• C) $29.47
• D) $34.10
• E) $30.30

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Definitions:

Pooled Estimator

A statistical method used to estimate the mean of two or more groups by assuming that they have the same variance.

Weighted Average

An average where each data point contributes to the final average in proportion to its importance or frequency.

Pooled Sample Variance

An estimate of the variance of two or more populations under the assumption that they have the same variance, calculated by pooling the variances of these samples.

Independent Samples

Two or more groups of samples that are selected from populations such that the selection of a sample does not influence the selection of the other samples.