Investors in common stock increase their wealth when the
A) the market value of the stock goes up.
B) when the stock pays a dividend.
C) when the stock pays interest on the original investment.
D) both A and B.
Answer: D
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A company purchased $8900 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $445 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:
A. $8633. B. $8201. C. $8246. D. $8900. E. $8455.
Marcel Lepine and Charles Aucoin are the two equal shareholders of a corporation that runs a clothing business. They begin to fight to the extent that they won't speak to each other even to manage the business
Marcel brings a court application under the shareholder oppression remedy to get a court order that the corporation buy his shares. The corporation has the money to do so, but Charles won't agree to the purchase. Which of the following is TRUE? A) Marcel will not be successful on the court application because there has merely been a deadlock and no oppression. B) Deadlock between shareholders is sufficient grounds for an order under the shareholder oppression remedy. C) The court will only order a sale to strangers and not order the corporation to purchase Marcel's shares. D) This is a common situation and not serious enough to justify any of the oppression remedies. E) The court cannot order Charles to agree to the purchase.
A corporation's tax basis in property received in exchange for corporate stock depends on whether the exchange was taxable or nontaxable to the transferors of the property.
Answer the following statement true (T) or false (F)
A benefit of MRP is the ______.
a. reduction in work-in-progress inventory b. increase in work-in-progress inventory c. increase in finished-goods inventory d. increase in inventory costs