Final answer:
Joan will receive cash dividends worth $250 from the Ultimate Restaurant Corporation. The stock dividend will grant her an additional 100 shares, but as these are not sold, they do not have an immediate cash value. Thus, her total dividends in cash value are $250.
Step-by-step explanation:
The question asks us to calculate the total value of cash dividends and stock dividends Joan will receive if she currently owns 1,000 shares of the Ultimate Restaurant Corporation, which declared a cash dividend of $0.25 per share and a stock dividend of 10 percent of the shares held.
Firstly, Joan's cash dividend can be calculated as 1,000 shares multiplied by $0.25, which equals $250. Secondly, the stock dividend of 10 percent means Joan will receive an additional 10% of her current shares, which is 1,000 shares multiplied by 10%, giving her 100 extra shares. If we assume the stock dividend has the same value per share as the current stock price, the stock dividend presently has no cash value until Joan decides to sell the shares. Therefore, in terms of current cash value, Joan's total dividends would be the sum of the cash dividends only, which is $250.