Xilo Corporation Has Decided on a 20% Stock Dividend

question 318

Multiple Choice

Xilo Corporation has decided on a 20% stock dividend. If the firm currently has 900,000 shares outstanding, how many shares will be outstanding after the stock dividend?

• A) 4,500,000 shares
• B) 1,080,000 shares
• C) 720,000 shares
• D) 180,000 shares
• E) 90,000 shares

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Definitions:

High-Low Method

The high-low method is a way of estimating the variable and fixed costs of a business by analyzing the highest and lowest levels of activity and their corresponding costs.

Machine Maintenance

The routine or preventive care given to machinery and equipment to keep them running efficiently and to avoid any unplanned downtime or failures.

Mixed Cost

A cost composed both of variable and fixed elements, where part of the expense varies with the level of output while the rest remains constant.

Variable Element

An element in planning or statistical analysis that can change or vary, affecting the outcomes or results.