Answer:
After stock dividend, Heidi will own 440 shares at a price of $15.45 per share.
Explanation:
Heidi owns 400 shares.
The price of these shares is $17/per share.
The firm announces a 10% stock dividend.
The number of shares owned after dividend
=Current shares+10% of current shares
=400+10% of 400
=400+40 shares
=440 shares
Price per share after dividend
=Current value of shares/ number of shares after stock dividend
=[tex]\frac{400*17}{440}[/tex]
=[tex]\frac{6800}{440}[/tex]
=$15.45
