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:

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in price, income, or other factors.

Perfectly Elastic

A situation in demand or supply where the quantity demanded or supplied changes by an infinite amount in response to any change in price.

More Elastic

Referring to a greater sensitivity of quantity demanded or supplied to changes in price, compared to goods or services with less elasticity.

Demand Elasticity

A measure of how much the demand for a product or service changes in response to changes in its price or other factors.