Question

Mr.​ Seider, a shareholder in the Greenfield​ Corporation, owns 9 comma 000 shares of their common​ stock, which represents 32​% of the outstanding common stock of Greenfield Corporation. Mr. Seider receives a 10​% stock dividend. After the stock​ dividend, what is Mr.​ Seider's ownership in Greenfield​ Corporation's common​ stock?

Answer 1

Answer:

32%

Explanation:

Since the question, it is mentioned that Mr. Seider owns 32% of the outstanding common stock of Greenfield Corporation. And, he also received the stock dividend of 10%.

But after the stock dividend, the ownership would remain the same i.e 32% because the dividend is based on the ownership criteria. As the dividend is distributed on the number of shares owned by the shareholder. So, the ownership would be 32% after the stock dividend