ABC declared a common stock dividend on March 10,at which time its shares were selling for $15 per share and 10,500 shares were outstanding.After the dividend,because only 13,650 shares were outstanding,some shareholders received fractional share rights.If the provisions of the dividend provided that one share was to be issued for each three shares previously owned,there must have been:

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The number of shares outstanding increased from 10,500 to 13,650, an increase of 3,150 shares. Since one share was issued for each three shares previously owned, there must have been 3,150 * 3 = 9,450 shares issued as a result of the dividend. This means that 13,650 - 9,450 = 4,200 shares were outstanding before the dividend. Since the dividend was declared at a time when the shares were selling for $15 per share, the total value of the dividend was 4,200 * $15 = $63,000. Since the dividend was paid in the form of fractional share rights, the value of each fractional share right must have been $63,000 / 9,450 = $6.66. Since each fractional share right represented 1/3 of a share, there must have been 9,450 * 1/3 = 3,150 fractional share rights outstanding.

ABC Declared a Common Stock Dividend on March 10,at Which