Numerical on Bonus Shares, Stock Split, Dividend Payout, Reverse Stock Split

Calculate the bonus shares if the company announces a 1:4 bonus issue and the current number of outstanding shares is 10,000.

• 10,400 shares

• 8,000 shares

• 12,500 shares

• 15,000 shares

Answer explanation

The bonus issue of 1:4 means for every 4 shares held, 1 bonus share is issued. So, 10,000 shares will receive 2,500 bonus shares, resulting in a total of 12,500 shares.

If a company declares a 2-for-1 stock split and the current market price of the stock is $100, what will be the new market price after the split?

• $50

• $200

• $75

• $150

Answer explanation

After a 2-for-1 stock split, the new market price will be half of the current price, so it will be $50.

A company has declared a dividend of $2 per share. If you own 1000 shares, what will be your total dividend payout?

• $1000

• $2500

• $1500

• $2000

Answer explanation

Total dividend payout = $2/share * 1000 shares = $2000. Therefore, the correct answer is $2000.

If a company announces a 1:5 reverse stock split and you own 500 shares, how many shares will you have after the reverse split?

• 100 shares

• 50 shares

• 600 shares

• 250 shares

Answer explanation

After the reverse stock split, you will have 100 shares because 500 shares divided by 5 equals 100 shares.

Find the bonus shares if the company issues a 3% bonus and the current number of outstanding shares is 50,000.

• 1,500 bonus shares

• 5,000 bonus shares

• 10,000 bonus shares

• 300 bonus shares

Answer explanation

To find the bonus shares, multiply the current number of outstanding shares (50,000) by the bonus percentage (3%), which equals 1,500 bonus shares.

A company decides to do a 3-for-2 stock split. If you own 300 shares, how many shares will you have after the split?

• 350 shares

• 500 shares

• 200 shares

• 450 shares

Answer explanation

After the 3-for-2 stock split, for every 2 shares you own, you will receive 3 shares. So, 300 shares will become 450 shares after the split.

If a company pays a dividend of $1.50 per share and you own 800 shares, what will be your total dividend payout?

• $1000

• $800

• $1500

• $1200

Answer explanation

The total dividend payout will be $1.50 * 800 shares = $1200. Therefore, the correct answer is $1200.

Calculate the new market price if a company declares a 1:3 stock split and the current market price of the stock is $80.

• $120

• $26.67

• $40

• $60

Answer explanation

After a 1:3 stock split, the new market price is calculated by dividing the current price by 3, which is $80 / 3 = $26.67. Therefore, the correct answer is $26.67.

A company has announced a 5% bonus issue. If the current number of outstanding shares is 20,000, how many bonus shares will be issued?

• 10,000 bonus shares

• 100 bonus shares

• 1,000 bonus shares

• 500 bonus shares

Answer explanation

The bonus shares issued can be calculated by multiplying the current number of outstanding shares (20,000) by the bonus percentage (5%), which equals 1,000 bonus shares.

If a company declares a dividend of $2.50 per share and you own 600 shares, what will be your total dividend payout?

• $1500

• $1000

• $600

• $250

Answer explanation

To calculate the total dividend payout, multiply the dividend per share ($2.50) by the number of shares (600), which equals $1500.