ABC Declared a Common Stock Dividend on March 10,at Which

question 143

Multiple Choice

ABC declared a common stock dividend on March 10,at which time its shares were selling for $15 per share and 10,500 shares were outstanding.After the dividend,because only 13,650 shares were outstanding,some shareholders received fractional share rights.If the provisions of the dividend provided that one share was to be issued for each three shares previously owned,there must have been:

• A) 1,050 fractional share rights outstanding.
• B) 350 fractional share rights outstanding.
• C) 117 fractional share rights outstanding.
• D) Fractional shares outstanding not determinable based on the information given.

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Definitions:

Fourth Root

The number that when multiplied by itself three times equals the original number.

Radical Equation

An equation that features a variable contained within a radical symbol or square root.

Imaginary Unit

A mathematical concept represented by \(i\), used to describe the square root of -1, fundamental in complex number theory.

Standard Form

In mathematics, standard form can refer to a way of writing numbers using the digits 0-9, with each digit having a place value. In the context of linear equations, it refers to Ax + By = C, where A, B, and C are integers.