You owned 200 shares last year and received a stock dividend of 5% at the end of last year. The number of shares you now have is _____ and your wealth has increased by ______%.

Question

Quizplus · Accepted Answer

A 5% stock dividend means you receive 5% more shares, so 200 * 0.05 = 10 additional shares, totaling 210 shares. However, a stock dividend does not increase your wealth percentage-wise, as the value per share typically adjusts to reflect the increased number of shares, leaving your total wealth unchanged.

You Owned 200 Shares Last Year and Received a Stock