Question

vision inc. had 400,000 common shares when a 25% stock dividend was declared and distributed. how many shares were issued andoutstanding after the stock dividend?

Answer 1

To calculate the number of shares issued and outstanding after a 25% stock dividend, divide the existing shares by 4 to get the number of additional shares issued. Then add the additional shares to the existing shares to get the total outstanding shares.

Step-by-step explanation:

To calculate the number of shares that were issued and outstanding after the stock dividend, we need to first calculate the number of shares that will be issued as a dividend. A 25% stock dividend means that for every 4 existing shares, 1 additional share will be issued. Therefore, for 400,000 existing shares, 100,000 additional shares will be issued as a dividend (400,000 / 4 = 100,000).

Adding the additional shares to the existing shares, we get a total of 500,000 shares outstanding after the stock dividend (400,000 + 100,000 = 500,000).