John owns 100 shares of XYZ Corporation's common stock. The stock has a par value of $10 per share and is currently selling for $50 per share. XYZ declares a 25% stock dividend. In a perfect capital market, after the dividend John will have:
a. 100 shares selling for $37.50 each.
b. 125 shares selling for $47.50 each.
c. 100 shares selling for $52.50 each.
d. 125 shares selling for $40.00 each.
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