Tangshan Mining Has 100,000 Shares Outstanding and Just Declared a 20

question 6

Multiple Choice

Tangshan Mining has 100,000 shares outstanding and just declared a 20% stock dividend. Before the announcement, the firm's shares were trading at $50.00 per share. After the stock dividend, the firm's shares should trade at ________ per share.

• A) $40.00
• B) $41.66
• C) $46.33
• D) remain unchanged