16-6 Stock dividend Example -Amoeba Products has 2 million shares currently outstanding at a price of $15 per share The company declares a 50% stock dividend. How many shares will be outstanding after the dividend is paid? Answer 2 mil x 50=1 mil +2 mil =3 mil shares Irwin/McGraw-Hill CThe McGraw-Hill Companies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 16- 6 Irwin/McGraw-Hill Stock Dividend Example - Amoeba Products has 2 million shares currently outstanding at a price of $15 per share. The company declares a 50% stock dividend. How many shares will be outstanding after the dividend is paid? Answer 2 mil x .50 = 1 mil + 2 mil = 3 mil shares