An owner of 2,500 shares of Simmons Company common stock receives a stock dividend of 50 shares.a. What is the effect of the stock dividend on the stockholder’s proportionate interest (equity) in the corporation?b. How does the total equity of 2,550 shares compare with the total equityof 2,500 shares before the stock dividend?

Cornerstones of Financial Accounting
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Chapter10: Stockholder's Equity
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Problem 3MCQ: Authorized stock represents the: number of shares that are currently held by stockholders. number of...
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An owner of 2,500 shares of Simmons Company common stock receives a stock dividend of 50 shares.
a. What is the effect of the stock dividend on the stockholder’s proportionate interest (equity) in the corporation?
b. How does the total equity of 2,550 shares compare with the total equity
of 2,500 shares before the stock dividend?

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