Tellabs distributes a 15% stock dividend. Before distributing the stock dividend, Tellabs had 15 million shares. How many outstanding shares does the firm have after it makes the stock dividend distribution?

A) 15 million shares
B) 17 million shares
C) 17.25 million shares
D) 17.50 million shares
E) none of the above

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, reflecting a company's desire to reinvest its profits.

Outstanding Shares

The total number of shares of stock that are currently owned by investors, including restricted shares owned by the company’s officers and insiders.

Distribution

The process of delivering products from the production or service facility to the end user, including storage, transportation, and logistics.