Sadaplast Has Just Declared a 25 Percent Stock Dividend

question 39

Multiple Choice

Sadaplast has just declared a 25 percent stock dividend.The annual dividend, before the stock dividend was declared, was $1.00.Sadaplast intends to pay a dividend of $1.05 per share after the stock dividend is paid.What is the percentage increase in the cash dividend that will accompany the stock dividend?

• A)6.25%
• B)26.25%
• C)31.25%
• D)5.00%

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