Mr. Smith, a shareholder in the Wolverine Corporation, owns 1,000 shares of their common stock, which represents 30% of the outstanding common stock of Wolverine Corporation. Mr. Smith receives a 10% stock dividend. After the stock dividend, what is Mr. Smith's ownership in Wolverine Corporation's common stock?

Question

Quizplus · Accepted Answer

A stock dividend increases the number of shares owned but does not change the percentage of ownership. Mr. Smith's ownership remains at 30%.

Mr Smith, a Shareholder in the Wolverine Corporation, Owns 1,000