A Company Has 21 Million Common Shares Outstanding at a Price

question 5

Multiple Choice

A company has 21 million common shares outstanding at a price of $63.00 each and an EPS of $12.00 per share. If the company wishes to provide a stock dividend of 30%, how many shares will shareholders receive for every ten shares currently held?

• A) 4.8 shares.
• B) 5 shares.
• C) 5.7 shares.
• D) 3.33 shares.
• E) 3 shares.