Cambridge Corp

question 103

Multiple Choice

Cambridge Corp.declared a 5% stock dividend.Will Wales owned 300 shares of Cambridge before the dividend.Cambridge shares were trading at $21 before the dividend.Which of the following will be true after the dividend is distributed?

• A)The total market value of Will's shares was $6,300 before the stock dividend but will probably decrease after the stock dividend.
• B)The total market value of Will's shares was $6,300 before the stock dividend and $6,615 after the stock dividend.
• C)Will owned 300 shares before the stock dividend and 315 shares after the stock dividend.
• D)Fewer investors will be able to buy Cambridge shares.