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F Co Declares a 5% Stock Dividend

Question 91

Multiple Choice

F Co. declares a 5% stock dividend. If the market price at declaration is $12 per share, a shareholder with 110 shares likely would receive:


A) 5 additional shares.
B) fractional share rights for 5 ½ shares.
C) 5 additional shares and $6 in cash.
D) 5 additional shares and a fractional share right for 2 ½ shares.110 shares 5% = 5.5 shares; one-half share $12 = $6

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