Kelso Corporation declared a 10 percent stock dividend. John, one of the stockholders, has 100 shares. How many shares will John own after the stock dividend?

Question

Quizplus · Accepted Answer

A 10 percent stock dividend means that for every 10 shares owned by a shareholder, they will receive an additional share. Therefore, John will receive 10 additional shares (10% of 100).

So after the stock dividend, he will own a total of 110 shares (100 + 10). The correct answer is A) 110.

Kelso Corporation Declared a 10 Percent Stock Dividend