Shannon owns 10,000 shares (10 percent) of the 100,000 outstanding shares of Greenwhite Corporation. If Greenwhite Corporation declares a dividend of 20 percent, Shannon will receive 2,000 shares. She now owns 12,000 shares-or 10 percent-of a total of 120,000 outstanding shares.

what is shannon's total share percentage?

Question

Business

Angelina Liu

7 February, 02:34

Shannon owns 10,000 shares (10 percent) of the 100,000 outstanding shares of Greenwhite Corporation. If Greenwhite Corporation declares a dividend of 20 percent, Shannon will receive 2,000 shares. She now owns 12,000 shares-or 10 percent-of a total of 120,000 outstanding shares.

what is shannon's total share percentage?

+2

Answers (1)

Know the Answer?

Cruz Fletcher · Answer 1

Total share percentage = 10%

Explanation:

The stock dividends do not change the participation of the shareholders unless they sale their new shares.

Shannon do not sold them, so it keeps their participation at 10%

before issue of stock dividends:

10,000/100,000 = 10%

after stock dividends:

12,000 / 120,000 = 10%