I'm looking at the below webpage. The question states \"On 01/30/12, prior to...., Rice declared a...

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Accounting

I'm looking at the below webpage. The question states \"On01/30/12, prior to...., Rice declared a 100% stock dividend onc/s\".
I see mathematically what happens but I don't understand why.How come two years of COMMON stock dividends are issued not justone year? It isn't cumulative preferred stock.
There's something about issuing common stock dividends I mustnot understand. Could you please connect the dots?
https://www.chegg.com/homework-help/questions-and-answers/december-31-2010-rice-company-300-000-shares-common-stock-10-000-shares-5-100-par-value-cu-q1083710.
Thank you, Natalie

Answer & Explanation Solved by verified expert

4.4 Ratings (614 Votes)

Solution 100 percent dividend means you that you will get 1 share of the Stock Dividend for every share you own That is for every share you earn you will get another share as dividend There are instances where the company gave 1 share for every share the shareholder owned In See Answer

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