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