Gilligan Corporation was established on February 15, 2014. Gilligan is authorized to issue 500,000 shares of $6.00 par value common stock. As of December 2016, Gilligan's stockholders' equity accounts report the following balances:
common stock 6$ par, 500,000 shares authorized, 55,000 shares issued and outstanding: 330,000
PIC in excess of par - common: 440,000 (added up to 770000)
retained earnings 1400000
total stockholders equity 21700000
At the end of 2016, Gilligan decides to issue a 5% stock dividend. At the time of issue, the market price of the stock was $22 per share
Calculate the number of shares outstanding after the stock dividend is issued.
A. 57,750 shares
B. 55,000 shares
C. 52,250 shares
D. 525,000 shares
