I'm not sure about this, but I think that, for 1, the market value would be the value of the firm before the dividend (a) minus the total dividend payment(b).  This would give us an answer of (1200 - 300)/20 = 45 for C. 

This seems correct since it is 75% of the original stock price, which meshes with the idea that dividend payments do not result in a net gain for the stockholders.

However, I would have thought that the resutant stock price in 2 would be 45 as well, but I also got 48.  Does anyone have any ideas why the stock dividend did not decrease the stock price as much as the cash dividend?