The Per Share Amount Normally Assigned by the Board of Directors

question 88

Multiple Choice

The per share amount normally assigned by the board of directors to a small stock dividend is

• A) the market value of the stock on the date of declaration.
• B) the average price paid by stockholders on outstanding shares.
• C) the par or stated value of the stock.
• D) zero.

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Definitions:

Sarbanes-Oxley Act

U.S. legislation enacted in 2002 to protect investors from fraudulent financial reporting by corporations, requiring strict adherence to accounting standards and the establishment of internal controls.

Internal Control

Internal control encompasses the policies and procedures implemented by a business to safeguard its assets, ensure accurate financial reporting, promote accountability, and prevent fraud.

Price-Earnings Ratio

A valuation metric for stocks, calculated as the market price per share divided by the earnings per share (EPS), indicating the dollar amount an investor can expect to invest in a company to receive one dollar of that company's earnings.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.