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Ierofanga [76]
3 years ago
6

Farrah owns 5,000 shares of stock in DAS, Inc. with a market value of $15,000. DAS declares a 20% stock dividend. After the divi

dend is paid, Farrah owns :
a. 5,000 shares with a market value of $18,000.

b. 6,000 shares with a market value of $15,000.

c. 6,000 shares with a market value of $18,000.

d. 5,100 shares with a market value of $15,300.
Business
1 answer:
Assoli18 [71]3 years ago
8 0

Answer:

Number of shares own will be 6000 and market value will be $15000

So option (b) will be the correct option

Explanation:

We have given that Farrah owns 5000 shares with a market value of $15000

Now it is declare that dividend = 20 % stock dividend

Now after the dividend paid number of shares own by Farrah =5000\times 1.2=6000

As the dividend has only effect on number of shares own so the market value will be the same as $15000

So number of shares own will be 6000 and market value will be $15000

So option (b) will be the correct option

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