Which of the following statements with regard to large stock dividends is true?
a. As a result of the stock dividend, retained earnings is reduced by the par value of the stock issued.
b. Retained earnings is reduced by the market value of the stock issued in the stock dividend.
c. If the market price of the stock before a 50% stock dividend is $30, after the stock dividend it will be $45.
d. As the result of a 50% stock dividend, a stockholder who had previously held 20 shares will then hold 40 shares.
a
You might also like to view...
Effective ________ exchange promotes the development of good integrative solutions.
Fill in the blank(s) with the appropriate word(s).
The following transactions apply to Kellogg Company.1) Issued common stock for $20,000 cash2) Provided services to customers for $38,000 on account3) Purchased land for $15,000 cash4) Incurred $29,000 of operating expenses on account5) Collected $35,000 cash from customers for services provided in event #26) Paid $27,000 on accounts payable7) Paid $2,000 dividends to stockholdersRequired:a) Identify the dollar amount effect on the statement of cash flows, if any, for each of the above transactions. b) If applicable, indicate whether each transaction involves operating, investing, or financing activities.
What will be an ideal response?
To obtain a contract with the Chinese government, Road & Bridge Engineering Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate A) the act of state doctrine
B) the doctrine of sovereign immunity. C) the Foreign Corrupt Practices Act. D) the principle of comity.
The manager of the service department of a local car dealership has noted that the service times of a sample of 30 new automobiles has a standard deviation of 5 minutes. A 95% confidence interval estimate for the standard deviation of the service times (in minutes) for all their new automobiles is
A. 16.047 to 45.722. B. 15.857 to 45.180. C. 3.982 to 6.722. D. 22.833 to 65.059.