Xilo Corporation has decided on a 20% stock dividend. If the firm currently has 900,000 shares outstanding, how many shares will be outstanding after the stock dividend?

Question

Quizplus · Accepted Answer

A 20% stock dividend on 900,000 shares means that shareholders will receive an additional 20% of their current holdings, which is 180,000 shares (20% of 900,000). Adding these to the original 900,000 shares results in a total of 1,080,000 shares outstanding.

Xilo Corporation Has Decided on a 20% Stock Dividend