You own 200 shares of Easy stock that has a current market price of $25/share. What is the expected value of your holdings immediately after a 15% stock dividend?

Question

Quizplus · Accepted Answer

A 15% stock dividend increases the number of shares by 15%, so you will have 230 shares (200 + 30). The price per share will adjust to $21.74 ($25 / 1.15) to keep the total value the same. Therefore, the value of your holdings remains $5,000 (230 shares * $21.74).

You Own 200 Shares of Easy Stock That Has a Current