Question: Your Aunt Mary recently called to ask you about a letter she had just received from her stockbroker. She said that the letter notified her

Your Aunt Mary recently called to ask you about a letter she had just received from her stockbroker. She said that the letter notified her that one of the stocks she owns will be paying a 10 percent stock dividend, so her 100 shares will now be 110 shares. Because the stock was trading at $20 a share before the stock dividend, she said that she was thrilled that she will soon hold 110 shares worth $2,200 but she wanted to check with you to determine if she was right. Explain to your Aunt Mary what exactly has happened here.

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