Anchor Company has 1,000,000 shares of common stock with a par value of $5 . Additional paid-in capital totals $5,000,000 and retained earnings is $8,000,000 . The directors declare a 10% stock dividend when the market value is $15 . The reduction of retained earnings as a result of the declaration will be:
a. $0.
b. $500,000.
c. $800,000.
d. $1,000,000.
e. $1,500,000.
E
You might also like to view...
Brandon, an American, works for a company that manufactures electronics. His managers select him for an assignment to lead the launch of a new product line in Germany. Which topic will be the most important during training to prepare him for the assignment?
A. marketing skills B. the advantages of U.S. culture C. how to determine the purchasing power of his salary in Germany D. what to expect from German culture E. details about the new product line
The discount rate is the
A. targeted inflation rate for an economy. B. ongoing taxation rate in an economy. C. interest rate that the Fed charges on the loans it makes. D. nominal interest rate charged by financial intermediaries when they advance loans.
The present value of a deferred annuity is determined on today's date, because the annuity payments begin some period after today's date
Indicate whether the statement is true or false
Which of the following strategies is most closely associated with a societal marketing orientation?
a. Using greenwashing techniques b. Fostering opportunism c. Using clean energy sources d. Increasing overhead production costs