Question
A corporation had 20,000 shares of $10 par value common stock outstanding on January 10. Later that day the board of directors declared a 30%
A corporation had 20,000 shares of $10 par value common stock outstanding on January 10. Later that day the board of directors declared a 30% stock dividend when the market value of each share was $40. How many new shares will be issued with this stock dividend?:
A. 189,000
B. 6,000
C. No new stock is issued
D. 60,000
E. 240,000
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
11th edition
1111571260, 978-1111571269
