Stock Dividends Video Lessons

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Problem: The corporation issued a small stock dividend of 15 percent of its 120,000 outstanding shares of common stock. You own 1,000 shares of the common stock, prior to the stock dividend. As a result of the stock dividend: A) you have 150 more additional shares of common stock. B) your total stockholders' equity increased. C) the company’s total stockholders' equity increased. D) you had a monetary gain equal to the 150 shares multiplied times the market price.

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Problem Details

The corporation issued a small stock dividend of 15 percent of its 120,000 outstanding shares of common stock. You own 1,000 shares of the common stock, prior to the stock dividend. As a result of the stock dividend:

A) you have 150 more additional shares of common stock.

B) your total stockholders' equity increased.

C) the company’s total stockholders' equity increased.

D) you had a monetary gain equal to the 150 shares multiplied times the market price.

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