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Storico currently has 30,000 shares outstanding that sell for $47.27 per share. The company plans to issue a stock dividend of 10 percent. How many new shares will be issued?

User Marekb
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Answer:

The number of new shares that will be issued is 3,000 shares.

Step-by-step explanation:

A stock dividend can be desctibed as dividend that paid to shareholders in shares instead of paying it in cash to the shaeholders.

From the question, we are given the following:

Number of shares outstanding = 30,000

Planned stock dividend percentage = 10%

Therefore, the number of new shares that will be issued as stock dividend to the shareeholders of Storico can be calculated as follows:

Number of new shares to issue = Number of shares outstanding * Planned stock dividend percentage = 30,000 * 10% = 3,000

Therefore, the number of new shares that will be issued is 3,000 shares.

User Infamy
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