Mr R Owns 20,000 Shares of ABC Corporation Stock

Multiple Choice

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) greater, but cannot be determined.