Sadaplast has just declared a 25 percent stock dividend.The annual dividend, before the stock dividend was declared, was $1.00.Sadaplast intends to pay a dividend of $1.05 per share after the stock dividend is paid.What is the percentage increase in the cash dividend that will accompany the stock dividend?
A)6.25%
B)26.25%
C)31.25%
D)5.00%

Question

Quizplus · Accepted Answer

Percentage increase = [1.25($1.05) - 1.0($1.00)]/1.0($1)
= 0.3125 or 31.25%

Sadaplast Has Just Declared a 25 Percent Stock Dividend