The stock dividend relabels a portion of the retained earnings that had been legally available for dividend declarations as a more permanent form of shareholders' equity, because
a. the firm has used some funds represented by past earnings to expand plant facilities or to replace assets at increased prices or to retire bonds.
b. the firm does not have this cash available for cash dividends
c. the stock dividend does not affect the availability of cash on hand or cash that the firm has already invested; rather, the stock dividend signals to readers of the balance sheet, perhaps more clearly than before, the commitment to investment.
d. all of the above
e. none of the above
D
You might also like to view...
In the aggregate demand-aggregate supply model, everything else remaining unchanged, an increase in taxes causes the ____ curve to shift ____.
A. short-run aggregate-supply; right B. short-run aggregate-supply; left C. aggregate-demand; left D. aggregate-demand; right
Which of the following events will cause a company's current ratio to decrease?
a. The sale of inventory for cash b. The sale of inventory for credit (accounts receivable) c. Issuing stock for cash d. Paying off long-term debt with cash
Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand. What kind of a pricing is the company depending on?
A) going-rate pricing B) image pricing C) market-skimming pricing D) target pricing E) markup pricing
The defining characteristic of ______ is that members are in different locations and work together through e-mail, videoconferencing, instant messaging, and other electronic media.
A. cross-functional teams B. self-managing teams C. problem-solving teams D. virtual teams