Samson owns 1, 500 shares out of the 10, 000 outstanding shares of Comakote Corporation.If Comakote Corporation declares a stock dividend of 30 percent, what will be the total stock Samson has upon receiving his stock dividend?

Question

Quizplus · Accepted Answer

If Comakote Corporation declares a stock dividend of 30%, then Samson will receive an additional 30% of the 1,500 shares he currently owns, which is 450 shares (30% of 1,500). Therefore, his total stock holding after the stock dividend will be 1,950 shares (1,500 + 450). Option C is the closest to this value.

Samson Owns 1, 500 Shares Out of the 10, 000