The Per Share Amount Normally Assigned by the Board of Directors

question 149

Multiple Choice

The per share amount normally assigned by the board of directors to a large 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:

Equivalent Annual Compounded

The annual interest rate that is equivalent to the nominal rate compounded more frequently than once a year.

Rate of Return

The profit or deficit experienced on an investment, calculated over a particular duration and shown as a fraction of the investment's original value.

Rental Income

Income received from renting out a property or another asset.

Property Taxes

Levies imposed by a government on a property owner, typically based on the value of the property.