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Find the value of the stock dividend on the declaration date

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Reference no: EM131938863

Question - Davidson Corporation has 1,000,000 shares of $10 par value common stock issued and outstanding. The market price of the stock is $25 per share. On March 1, 2016, the company's board of directors declared a 5% stock dividend. The value of the stock dividend on the declaration date would be:

a. $25,000,000

b. $500,000

c. $50,000

d. $1,250,000

Reference no: EM131938863

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