An Individual Shareholder Owns 3,000 Shares of Baxter Corporation Common

question 76

Multiple Choice

An individual shareholder owns 3,000 shares of Baxter Corporation common stock with a basis of $10 per share. She receives a nontaxable 5% stock dividend. The basis per share of the common stock after the stock dividend is

• A)$9.00.
• B)$9.50.
• C)$9.52.
• D)$10.00.

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Definitions:

Ethically Bound

Obligation to adhere to a set of moral principles and standards of behavior, particularly in professional settings.

Eyewitness Testimony

Evidence given by a person who has witnessed an event or crime, regarding their observations.

Legal System

The system of rules and guidelines, usually enforced through a set of institutions, used to govern a community, society, or country.

Confidence

The feeling of self-assurance arising from an appreciation of one's own abilities or qualities.