Assume you own 300 shares of ABC stock and receive a stock dividend of 5 percent.As a result,the number of shares you own will change to ________ shares while your total wealth will increase by ________ percent.

Question

Quizplus · Accepted Answer

A 5 percent stock dividend means you receive 5 percent more shares, so 300 * 0.05 = 15 additional shares, totaling 315 shares. Stock dividends do not increase total wealth as they do not change the value of the investment, so the wealth increase is 0 percent.

Assume You Own 300 Shares of ABC Stock and Receive