Maywood Inc.has 2,000 shares of common stock outstanding.A stockholder has 100 shares.If the company distributes a 20% stock dividend,how many shares of Maywood will the stockholder have?

Question

Quizplus · Accepted Answer

A stock dividend of 20% means that the company will issue 20% more shares to each existing shareholder. Therefore, the stockholder with 100 shares will receive an additional 20 shares (20% of 100). The total number of shares owned by the stockholder will now be 120.