MNO Declared a Stock Dividend When It Had 40,000 Shares

MNO declared a stock dividend when it had 40,000 shares outstanding.After issuing the dividend, 7,200 additional shares and 4,000 fractional share rights were outstanding.If it required five fractional share rights to acquire a new share, this dividend must have been a:

A) 5 percent stock dividend.
B) 20 percent stock dividend.
C) 15 percent stock dividend.
D) 10 percent stock dividend.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free