Mr. R. owns 20,000 shares of ABC Corporation stock. The company is pla

Mr. R. owns 20,000 shares of ABC Corporation stock. The company is planning to issue a stock dividend. Before the dividend Mr. R. owned 10 percent of the outstanding stock, which had a market value of $200,000, or $10 per share.

Upon receiving the 10 percent stock dividend the value of his shares is ________.
A) $220,000
B) $210,000
C) $200,000
D) $180,000

ANSWER

C