Question

The Ultimate Restaurant Corporation declares a stock dividend as well as its usual cash dividend of $.25 per share. For the stock dividend, existing stockholders will receive 10 percent of the amounts of stock they currently hold. If Joan currently has 1,000 shares of stock in this company, she will receive cash dividends and stock dividends worth a total of:

Answer 1

Joan will receive cash dividends and stock dividends worth a total of $250 + 100 shares.

Step-by-step explanation:

To calculate the total value of cash dividends and stock dividends that Joan will receive, we need to first find the value of her cash dividends and then the value of her stock dividends.

Value of Cash Dividends: Joan currently has 1,000 shares of stock in the company. The cash dividend per share is $0.25. To find the value of the cash dividend, we multiply the cash dividend per share by the number of shares Joan has: $0.25 * 1,000 = $250.

Value of Stock Dividends: Joan will receive 10% of the amount of stock she currently holds. We can calculate the number of stock dividends she will receive by multiplying her current number of shares by 10%: 1,000 * 0.1 = 100 shares.

Therefore, Joan will receive cash dividends and stock dividends worth a total of $250 + 100 shares.