F Co. declares a 5% stock dividend. If the market price at declaration is $12 per share, a shareholder with 110 shares likely would receive:
A) Five additional shares.
B) Fractional share rights for 5½ shares.
C) Five additional shares and $6 in cash.
D) Five additional shares and a fractional share right for 2½ shares.

Question

Quizplus · Accepted Answer

110 shares × 5% = 5.5 shares; one-half share × $12 = $6

F Co Declares a 5% Stock Dividend