King Corp. has one million shares outstanding with a par value of $5. On August 24 of this year, it issued a 10% stock dividend when its stock price was $25. As a result of this stock dividend, retained earnings:
A. decreased by $500,000.
B. increased by $500,000.
C. decreased by $2,500,000.
D. increased by $2,500,000.
Answer: C
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Which is true about an elimination of nontariff barriers on import of furniture?
a. decreases furniture imports b. decreases profits of import-competing furniture producers c. generates jobs for domestic furniture workers d. increases furniture costs
Every consensual secured transaction involves:
a. a debtor and a secured party. b. collateral. c. a security agreement and a security interest. d. All of these.
Rollins Corporation is constructing its MCC schedule. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for $1,000. The firm's marginal tax rate is 40 percent. Which of the following is Rollins' component cost of debt? (Round off the answer to one decimal place.)?
A. 8.4 percent? B. ?7.2 percent C. ?6.8 percent D. ?5.3 percent E. ?9.5 percent
What are the minimum age and service requirements that can be imposed on employees eligible to participate in a retirement plan?
A) age 18 and 6 months of service B) age 21 and 1 year of service C) age 21 and 3 years of service D) age 25 and 4 years of service