After the payment of a 25% stock dividend,an investor has 500 shares of stock and $400.What did the investor have prior to the stock dividend?

Name: After the payment of a 25% stock dividend,an investor has 500 shares of stock and $400.What did the investor have prior to the stock dividend?
Brand: Quizplus
Rating: 5.0 (62 reviews)

Question

Quizplus · Accepted Answer

A 25% stock dividend means the investor receives 25% more shares. If the investor now has 500 shares, they originally had 400 shares (since 400 + 25% of 400 = 500). The cash amount remains unchanged at $400.

After the Payment of a 25% Stock Dividend,an Investor Has