Asked by chris

A man owned 75 shares of stock worth $50 each. The corporation declared a dividend of 8 percent payable in stock. How many shares did he then own? 81 shares but how?
Answered by Reiny
value of original stock = 75(50) = 3750
after increase of 8%, the value is 3750(1.08)
= 4050

number of shares = 4050/50 = 81
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