Cba inc has 400000 shares outstanding with a 5 par value, Financial Management

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Cba inc has 400000 shares outstanding with a 5 par value

CBA Inc has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The stock is currently selling for $34. CBA has $5,000,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%. How many shares will be outstanding after the stock dividend?

376,000

424,000

400,000

9,328,000

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Financial Management: Cba inc has 400000 shares outstanding with a 5 par value

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Financial Management: Cba inc has 400000 shares outstanding with a 5 par value

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