Q17

On January 1, The Blue Azul Diving Co. had total shareholders' equity as shown below when their shares were selling at $25 per share:

Common shares (125,000 shares)......................		$2,500,000
Retained earnings...........................................		4,000,000
Total shareholders' equity......................		$6,500,000

If the company declared a 15% stock dividend, the number of issued and outstanding shares would

A) remain unchanged.

B) increase by 18,750 shares.

C) decrease by 18,750 shares.

D) total 143,700 shares.