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A man owns 50 shares of stock worth $30 each. The corporation declared a dividend of 6% payable in stock. How many shares did he then own?

A. 47 shares
B. 53 shares
C. 56 shares
D. 62 shares

User Ere
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1 Answer

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Final answer:

After receiving a 6% stock dividend on his 50 shares worth $30 each, the man will own a total of 53 shares.

Step-by-step explanation:

The question involves a man who owns 50 shares of stock, each worth $30, and the corporation has declared a 6% dividend payable in stock. To calculate the number of new shares the man will receive, multiply the number of shares he owns by the dividend percent in decimal form:

50 shares × 0.06 = 3 shares

Therefore, he will receive 3 additional shares as a dividend. Adding this to his original 50 shares:

50 shares + 3 shares = 53 shares

The answer to the question is that the man will then own 53 shares in total.

User Tessa Lau
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