Câu 50: SERIES-6: Investment Company and Variable Contracts Products Representative Qualification Examination (IR)

Simple Simon owns 1,000 shares in the Pasty Pie Corporation, which has just declared a stock dividend of 5%. Just prior to this announcement, Pasty Pie was selling for $10 a share. This announcement will:

1. A. increase Pasty’s shares outstanding and reduce Simple’s proportionate ownership in the firm.
2. B. increase the number of shares that Simple owns to 1,050, which will increase the market value of the shares that he owns from $10,000 to $10,500.
3. C. increase the number of shares that Simple owns to 1,050, but this will not affect the market value of Simple’s holdings. — đáp án hiện tại
4. D. increase Simple’s cash by the amount of the dividend paid: 0.05 x $10 = $0.50 x 1,000 shares = $500.