The price of the stock or it will be traded for with quarterly rate of return of 4%. and a dividend pay of 0.75 [0.75/ (0.04÷4) = $75]
A stock dividend is a dividend payment made to shareholders that comes in the form of shares rather than cash. The advantage of a stock dividend is that it pays investors while keeping the company's cash on hand.
An alternative to a cash dividend is a stock dividend, sometimes known as a "scrip dividend," which is paid to present shareholders in the form of shares. When a company wants to reward its shareholders but is short on cash or decides to keep cash on hand for other investments, it may pay out this type of dividend.
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