Final answer:
After a 50% stock dividend by Sharper Corporation, the number of shares outstanding would increase to 150,000 shares. For investors, returns can come from dividends or capital gains from selling the stock at a higher price. At Darkroom Windowshade Company, investors 1 and 2 need more support to have a majority for decisions.
Step-by-step explanation:
When a corporation like Sharper issues a 50% stock dividend, it distributes additional shares to current shareholders proportional to their existing holdings. If we assume Sharper Corporation has 100,000 shares outstanding currently, after a 50% stock dividend, the total number of shares outstanding would increase by 50%, resulting in 150,000 shares outstanding. The stockholder's equity section would adjust the stated capital based on the additional shares.
Investors expect a rate of return from their investments; dividends and capital gains are two forms to realize this return. For instance, if a financial investor buys a share of stock at $45 and sells it later for $60, this $15 increase in value represents a capital gain.
If the Darkroom Windowshade Company aims to change its top management through a vote, it would require a majority of shareholders to agree. With investors 1 and 2 combining their shares, they hold 38,000 shares out of 100,000, which is not a majority. Therefore, they would need additional investors to join them to ensure control over the decision-making process.