John and Mary Smith own 500 shares of ABE stock.After the company pays a 6 percent stock dividend,John and Mary will own 530 shares of ABE stock.

Question

Quizplus · Accepted Answer

If ABE pays a 6 percent stock dividend, John and Mary will receive an additional 6% of their total shares, which is 30 shares (500 x 0.06 = 30). Therefore, their total number of shares will be 530 (500 + 30), as stated in the statement.

John and Mary Smith Own 500 Shares of ABE Stock