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Lisa Owns 750 of the 7,500 Outstanding Shares of Maple

Question 51

Multiple Choice

Lisa owns 750 of the 7,500 outstanding shares of Maple Industries.Assume the company issues another 750 shares to the general public and Lisa does not purchase any of them.As a result,Lisa


A) will automatically be given an additional 75 shares through a stock dividend.
B) retains 10 percent of the voting power of the company although her shares lose value.
C) automatically lost 10 percent of her investment's value.
D) suffers from dilution of percentage ownership.
E) will automatically receive 10 percent higher dividends per share.

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