Question

The Spanish company has 150,000 shares outstanding. They have declared a 15% stock dividend on a stock that has an original price of $20 per share. How many additional shares will be issued

Answer 1

Answer:

Additional shares issued = 22,500

Explanation:

Given:

Outstanding shares = 150,000

Price per share = $20

Stock dividend = 15% = 15 / 100 = 0.15

Additional shares issued = ?

Computation of additional shares issued:

Additional shares issued = Outstanding shares × Stock dividend

Additional shares issued = 150,000 × 0.15

Additional shares issued = 22,500

Therefore, 22,500 new shares will issue as stock dividend.