XYZ Corporation Declares a 10 Percent Stock Dividend Distributable to All

question 91

True/False

XYZ Corporation declares a 10 percent stock dividend distributable to all shareholders.There is only the one class of stock outstanding,and shareholders do not have any choices with respect to the distribution.Carol had owned 100 shares of stock,and she received 10 new shares as a result of the stock dividend.The stock is trading at $25 per share as of the distribution.Carol will recognize $250 of dividend income.

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Definitions:

Market Prospects

The potential for future sales growth or business expansion based on current market trends, consumer behavior, and economic conditions.

Positive Market Expectations

The anticipation or belief among investors and consumers that the market will grow or perform well in the future.

Profitability

The ability of a company to generate profit from its operations over time, typically measured by various financial metrics.

Comparative Financial Statement

Financial statements that present information for more than one period, facilitating the analysis of trends over time.