Hunter Ltd

question 5

Multiple Choice

Hunter Ltd.declares a 10% share dividend on December 31,2020.Currently Hunter has 10,000 shares outstanding.The market value of the shares on the date of declaration is $1 per share.The value to be assigned to this share dividend is

• A)$1,000
• B)$4,000
• C)$6,000
• D)$8,000
• E)$9,000

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Definitions:

Relatively Price Inelastic

A situation where the demand for a product changes by a smaller percentage than changes in price, indicating that consumers are less responsive to price changes.

Price Elasticity

A metric for evaluating how variations in the price of a commodity impact its demand level.

Unity

The state of being united or joined as a whole, often used in various contexts to denote harmony and agreement among members of a group or between entities.

Coefficient of Price Elasticity

The coefficient of price elasticity measures how much the quantity demanded of a good or service changes in response to a change in its price, indicating its price sensitivity.