A stockholder who received a 10% common stock dividend would have an increase in her/his ownership percentage equal to:
A)10%
B)20%
C)cannot be determined from the information given
D)there would be no change in the ownership percentage

Question

Quizplus · Accepted Answer

A 10% common stock dividend means that the stockholder receives additional shares equivalent to 10% of their current holdings, but since all shareholders receive the same percentage increase, the overall ownership percentage in the company does not change.

A Stockholder Who Received a 10% Common Stock Dividend Would