Mr.Seider,a shareholder in the Greenfield Corporation,owns 2000 shares of their common stock,which represents 24% of the outstanding common stock of Greenfield Corporation.Mr.Seider receives a 5% stock dividend.After the stock dividend,what is Mr.Seider's ownership in Greenfield Corporation's common stock?

Question

Quizplus · Accepted Answer

Mr. Seider's ownership percentage in Greenfield Corporation's common stock remains the same at 24% after the stock dividend because the dividend increases the number of shares he owns while also increasing the total number of outstanding shares by the same proportion.

MrSeider,a Shareholder in the Greenfield Corporation,owns 2000 Shares of Their