RKJ Company Has Provided the Following: • 100,000 Shares of $5

question 62

Multiple Choice

RKJ Company has provided the following: • 100,000 shares of $5 par value common stock are authorized
• 70,000 shares have been issued
• 65,000 shares are outstanding
Which of the following statements is correct?

• A) RKJ has 35,000 shares of treasury stock.
• B) RKJ has 30,000 shares of treasury stock.
• C)RKJ can reissue an additional 35,000 shares of common stock.
• D)RKJ can issue an additional 30,000 shares of common stock.

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Definitions:

Efficient Markets Hypothesis

A theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the average market return.

Random Walk

The path of a variable whose changes are impossible to predict.

Marginal Utility

The additional satisfaction or usefulness gained from consuming one more unit of a good or service.

Risk-averse

Describes individuals or entities that prefer to avoid risk and would rather choose a certain outcome over a gamble with a potentially higher, but uncertain, return.