Tellabs Distributes a 15% Stock Dividend

question 149

Multiple Choice

Tellabs distributes a 15% stock dividend. Before distributing the stock dividend, Tellabs had 15 million shares. How many outstanding shares does the firm have after it makes the stock dividend distribution?

• A)15 million shares
• B)17 million shares
• C)17.25 million shares
• D)17.50 million shares
• E)none of the above

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Definitions:

Provincial Utility

A utility company or service, like electricity or water, that is operated at the provincial or state level rather than locally or nationally.

Biweekly

Occurring every two weeks.

Overtime

Additional time worked beyond the standard working hours, often compensated at a higher rate.

Weighted Average

An average that takes into account the varying degrees of importance of the numbers in a data set.