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Homework answers / question archive / Vista, Inc
Vista, Inc. had 300,000 shares of common stock outstanding when a 30% stock dividend was declared and issued. How many shares were outstanding after the stock dividend?
a. 390,000
b. 330,000
c. 300,000
d. 309,000
Answer:
a .
Step-by-Step explanation
Stock dividend results in giving additional shares to existing shareholder based on existing shares. It involves distribution more shares of the company.
Number of new share is percentage of stock dividend with existing shares outstanding.
New number of shares =300000*30% =90000
Hence, number of share Outstanding after stock dividend=300,000+90,000
= 390,000 shares
