Mr. Seider, a shareholder in the Greenfield Corporation, owns 9 comma 000 shares of their common stock, which represents 32 % of the outstanding common stock of Greenfield Corporation. Mr. Seider receives a 10 % stock dividend. After the stock dividend, what is Mr. Seider's ownership in Greenfield Corporation's common stock?

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Business

Johnathan Joyce

24 February, 03:31

Mr. Seider, a shareholder in the Greenfield Corporation, owns 9 comma 000 shares of their common stock, which represents 32 % of the outstanding common stock of Greenfield Corporation. Mr. Seider receives a 10 % stock dividend. After the stock dividend, what is Mr. Seider's ownership in Greenfield Corporation's common stock?

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Sariah Floyd · Answer 1

32%

Explanation:

Since the question, it is mentioned that Mr. Seider owns 32% of the outstanding common stock of Greenfield Corporation. And, he also received the stock dividend of 10%.

But after the stock dividend, the ownership would remain the same i. e 32% because the dividend is based on the ownership criteria. As the dividend is distributed on the number of shares owned by the shareholder. So, the ownership would be 32% after the stock dividend