Question

At the beginning of the year, Stamp Co had 200,000 shares outstanding. During the year, they issued an additional 50,000 shares. What is the percentage increase in the number of shares issued?

a) 50%
b) 25%
c) 20%
d) 30%

Answer 1

The percentage increase in the number of shares issued by Stamp Co is 25%, which is calculated by dividing the additional shares (50,000) by the original amount (200,000) and then multiplying by 100. The correct option is b) 25%.

Step-by-step explanation:

The question asks for the percentage increase in the number of shares issued by Stamp Co. when they originally had 200,000 shares and then issued an additional 50,000 shares. To calculate the percentage increase, we need to divide the number of additional shares by the original number of shares and then multiply by 100.

So, the calculation is (50,000 / 200,000) × 100. This equals 0.25 × 100, which is 25%. Therefore, the percentage increase in the number of shares issued is 25%.

The correct option is b) 25%.