MNO Declared a Stock Dividend When It Had 40,000 Shares

question 154

Multiple Choice

MNO declared a stock dividend when it had 40,000 shares outstanding.After issuing the dividend,7,200 additional shares and 4,000 fractional share rights were outstanding.If it required five fractional share rights to acquire a new share,this dividend must have been a:

• A) 5 percent stock dividend.
• B) 10 percent stock dividend.
• C) 15 percent stock dividend.
• D) 20 percent stock dividend.

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Definitions:

Postconventional

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The practice of leading a group or organization with a focus on behavior that is considered morally right or good.

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