Question

A man owns 50 shares of stock worth $30 each. The corporation declared a dividend of 6% payable in stock. How many shares did he then own?

Answer 1

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Answer:

  53 shares

Step-by-step explanation:

If we assume the price remained constant, then the number of shares increased by 6%.

  (50 shares)(1 +6%) = 53 shares

The man then owned 53 shares.