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bezimeni [28]
3 years ago
13

"XYZ Corporation announces a 10% stock dividend, followed by a 5% "spin off" of a subsidiary business. A customer who owns 200 s

hares of XYZ will receive:"
Business
1 answer:
Deffense [45]3 years ago
3 0

Answer:

20 shares of XYZ and 11 shares of the spin-off

Explanation:

The 20 shares of XYS comes from

= 200 shares × 10%

= 20 shares-

So, the total number of shares now is

= 200 shares + 20 shares

= 220 shares

And there is 5% spin off

So, the number of shares contains spin off is

= 220 shares × 5%

= 11 shares

This represents the separate company

hence, there is 20 shares of XYZ and 11 shares of the spin-off

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