APPLY THE CONCEPTS: Determine the effect on stockholders You’ve examined how a s

Question

APPLY THE CONCEPTS: Determine the effect on stockholders You’ve examined how a stock dividend affects the company, and you know that the total number of shares outstanding has increased by 10%. What does this mean for shareholders? Assume that you are a shareholder who owns 15% of the company in question prior to the stock dividend. Based on what you know about the effects of a stock dividend, fill in the table concerning the post–stock dividend situation. Before Stock Dividend After Stock Dividend Total shares issued by company 7,000 Number of shares owned by you 1,050 Proportionate ownership 15%

Explanation / Answer

Answer: Its means that every shareholders has increased their shares 10% in Proportion of their share held.

After Stock Dividend declared than number of shares is increased.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.