Mr Smith, a Shareholder in the Wolverine Corporation, Owns 1,000

question 117

Multiple Choice

Mr. Smith, a shareholder in the Wolverine Corporation, owns 1,000 shares of their common stock, which represents 30% of the outstanding common stock of Wolverine Corporation. Mr. Smith receives a 10% stock dividend. After the stock dividend, what is Mr. Smith's ownership in Wolverine Corporation's common stock?

• A) 10% ownership
• B) 20% ownership
• C) 30% ownership
• D) 40% ownership

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Definitions:

Medicare Tax Rate

The percentage of an individual's wages that is withheld or paid toward Medicare, a U.S. government health insurance program.

Net Pay

The amount of an employee's income after all deductions like taxes, insurance, and retirement contributions have been subtracted.

Social Security

A government program that provides financial assistance to people with inadequate or no income, such as the elderly, disabled, and survivors.

Medicare Tax

A federal tax that funds Medicare, health insurance for individuals over 65; deducted from employees' paychecks.