ABC Company has 4,985 shares outstanding at a price of $167.01 per share. What will be...

ABC Company has 4,985 shares outstanding at a price of $167.01 per share. What will be the new shares outstanding after a stock dividend of 8%. Enter your answer rounded off to two decimal points.

Expert Solution

Share prior to dividend = 4985 shares

Stock dividend = 8 %

Share after stock dividend = 4985*.08 +4985 = 5383.80 shares

Since the stock dividend is less than 25 % therefore market value of $ 167.01 per share will be used to transfer from retained earnings to paid - in capital .

jeff jeffy answered 2 years ago

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