B&O Railroad Inc.transports industrial products and supplies throughout the North Eastern United States.Selected financial information for B&O is provided in the table below.B&O is considering a stock dividend of 10%,whereby each shareholder of record will receive one additional share for each 10 shares that they own.What will shares outstanding be after the dividend?
B&O Railroad Inc.
Selected Financial Information

Question

Quizplus · Accepted Answer

S = 11ea7fdb_fc56_97de_a768_5d04c574f7fd_TB2902_11 The split ratio, denoted S, for a 10% stock dividend is: S = 11ea7fdb_fc56_97df_a768_23af08cdfc65_TB2902_11 = 1.10 Shares outstanding after the dividend are: S_A = S × S_B S_A = 1.10 × 150M = 165M