The Andre Group is one of Cold Ducks leading competitors. Andres market intelligence research team has learned of Cold Ducks stock split plans, and is considering paying a stock dividend in response. As a result, executives at Andre decide to pay stock dividends to its shareholders. A stock dividend is another way of keeping the stock price from going too high. The Andre Group currently has 1,100,000 shares of common stock outstanding.

If Andre pays a 7% stock dividend, how many new shares will the firm issue to its existing shareholders?

69,300 shares

65,450 shares

61,600 shares

77,000 shares