Answer:
C.$9.52
Explanation:
Existing shares of individual shareholder = 3,000
Stock dividend received = 5%
Number of shares received in stock dividend = Existing shares of individual shareholder x Stock dividend received
= 3,000 x 5%
= 150
Number of shares after stock dividend = 3,000 + 150
= 3,150
The shareholder has basis of $10 per share before stock dividend,
total basis before stock dividend = 3,000 x 10
= $30,000
Total basis will remain same after stock dividend.
Basis per share after stock dividend = Total basis before stock dividend/Number of shares after stock dividend
= 30,000/3,150
= $9.52
Therefore, The basis per share of the common stock after the stock dividend is %9.52
