Sue owns 500 shares of stock in a company that has 10,000 outstanding shares.The company declares a stock dividend of 10%.How many stock dividend shares will Sue receive?

Question

Quizplus · Accepted Answer

Since the company has 10,000 outstanding shares and declares a stock dividend of 10%, that means they will distribute 1,000 new shares (10% of 10,000) among the shareholders. Sue owns 500 shares, so she will receive 10% of 500 shares, which is 50 new shares. Therefore, the correct answer is B, 50.

Sue Owns 500 Shares of Stock in a Company That