The Smith family owns 200 shares of Elta stock.The company declared a 5 percent stock dividend.The Smiths now own:

Question

Quizplus · Accepted Answer

A 5% stock dividend means that the company is giving an additional 5% of the total number of shares owned by the Smith family. So, the Smith family will receive 5% of 200 shares which equals 10 shares. Therefore, the Smith family now owns 200 original shares plus the additional 10 shares from the stock dividend, making a total of 210 shares.

The Smith Family Owns 200 Shares of Elta Stock