Use the Following Information for Questions Below
on January 1,The $( 125,000$

question 41

Multiple Choice

Use the following information for questions below
On January 1,The Blue Azul Diving Co.had total shareholders' equity as shown below when their shares were selling at $25 per share:
Common shares $( 125,000$ shares) $\ldots \ldots \ldots \ldots . \$ 2,500,000$
Retained earnings $\ldots \ldots \ldots \ldots . 4,000,000$
Total shareholders' equity $\ldots \ldots \ldots \ldots . \$ 6,500,000$
-Assume the company declared and issued a 50% stock dividend.The effect of this dividend would

• A)increase common shares by $1,250,000 and shares issued and outstanding by 62,500.
• B)increase common shares by $1,250,000 with no change in the number of issued and outstanding shares.
• C)leave total shareholders' equity unchanged but increase the number of shares issued and outstanding to 187,500.
• D)reduce retained earnings by $2,000,000 and double the number of shares issued and outstanding.

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Definitions:

Neurotic

Relating to, suffering from, or characteristic of neurosis, which involves emotional distress but not major disturbances in thought or behavior.

Neuroticism

A personality trait characterized by a tendency towards anxiety, moodiness, worry, and other emotional states.

Traits of Anxiety

Characteristics or behaviors commonly associated with anxiety, including excessive worry, nervousness, restlessness, and physical symptoms like increased heart rate.

Impulsiveness

The tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.