Xilo Corporation Has Decided on a 20% Stock Dividend

question 318

Multiple Choice

Xilo Corporation has decided on a 20% stock dividend. If the firm currently has 900,000 shares outstanding, how many shares will be outstanding after the stock dividend?

• A) 4,500,000 shares
• B) 1,080,000 shares
• C) 720,000 shares
• D) 180,000 shares
• E) 90,000 shares

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Definitions:

Lack of Capital

A situation where there is insufficient financial resources or investment to fund current operations or expand a business.

Legal Structure

The organizational form a business takes, which can affect liability, taxation, and regulatory obligations.

Employee Retention

The ability of an organization to retain its employees and reduce turnover by creating a positive working environment and offering incentives.

Gain

An increase in wealth, resources, or advantages, often realized through investment, business operations, or other economic activities.