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large stock dividend vs small stock dividend
user-14908 - 06/11/2020, 10:48 am

why 12000/4000 and why not 12000/52000 ?

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Leelah-18085 - 06/15/2020, 11:45 am

"The Mills Corporation was STARTED SEVERAL YEARS AGO"
"AT THAT TIME, 30,000 shares were issued for cash of $12/share" "LAST year, another 10,000 shares were issued for cash of $19 per share"

These are the information provided on the old/PAST years (40,000) shares.
THE 12,000 (new) SHARES WERE ISSUED IN THE CURRENT YEAR.

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Leelah-18085 - 06/13/2020, 11:56 am

Because the 12,000 shares is part of the ADDITIONAL (new) shares JUST being issued. You compare that to (old) shares that has ALREADY BEEN ISSUED (Outstanding) 30000 + 10000 = 40000

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user-14908 - 06/14/2020, 5:07 pm

on carefully examing the question , it is WRITTEN "EARLY IN CURRENT YEAR" it is not at all written " AT THE END OF THE YEAR OF MID OF THE YEAR " , hence if the assumption is being taken then on the basis of word EARLY either they have issued either on Jan or Feb but not at December hence as what have u mentioned JUST is bit vague and based on this i still don't think 12000/40000 is appropriate