Vadel Inc, a Canadian Public Company, Has 1,000,000 Shares Outstanding with with a Total

Vadel Inc., a Canadian public company, has 1,000,000 shares outstanding with a total PUC of $1,750,000.Mr.Vincent Dorval owns 5,000 of these shares with an adjusted cost base of $11,250.Vadel Inc.declares a 5 percent non-eligible stock dividend at a time when its shares are trading at $2.50 per share.Which of the following statements is cor- rect?

A) Mr.Dorval's Taxable Income will increase by $781.25 as a result of the dividend.
B) After the dividend, the adjusted cost base of Mr.Dorval's shares will be $11,875.
C) After the dividend, the PUC of Vadel's shares will be $1,875,000.
D) All of the above.
E) None of the above.