On June 30, 2013, Stephans Company Showed the Following Data

On June 30, 2013, Stephans Company showed the following data on the equity section of their balance sheet:
$\begin{array}{|l|r|r|}\hline \text { Stockholders' equity } & & \\\hline \text { Common stock, } \$ 1 \text { par } & 100,000 \text { shares authorized } &\$40,000 \\\hline & 40,000 \text { shares issued } & \\\hline \text { Paid-in capital in excess of par } & & 260,000 \\\hline \text { Retained earnings } & & 940,000 \\\hline \text { Total stockholder's equity } & & \$ 1,240,000 \\\hline\end{array}$

On July 1, 2013, Stephans distributed a 5% stock dividend. The market value of the stock at that time was $13 per share.
- Following this transaction, what would be the new number of shares issued shown on the balance sheet?

A) 26,000
B) 66,000
C) 42,000
D) 105,000