The B. Spaniel Company has Common Stock with a $5 par value. 100,000 shares were authorized and 25,000 shares were issued. Common stock is currently selling at $13 per share. The number of shares of common stock authorized and issued after the distribution of a 15% common stock dividend is:

Question

Quizplus · Accepted Answer

A 15% stock dividend on 25,000 issued shares results in an additional 3,750 shares (15% of 25,000), making the total issued shares 28,750. The number of authorized shares remains unchanged at 100,000.

The B Spaniel Company Has Common Stock with a $5 Par