Hernandez Company Has 560,000 Shares of $10 Par Value Common

question 26

Multiple Choice

Hernandez Company has 560,000 shares of $10 par value common stock outstanding. During the year, Hernandez declared a 10% stock dividend when the market price of the stock was $30 per share. Four months later Hernandez declared a $.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

• A) $1,988,000.
• B) $ 840,000.
• C) $ 308,000.
• D) $ 280,000.

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Definitions:

Simple Events

Events that cannot be broken down into smaller parts and have a single outcome.

Simple Events

Events that cannot be broken down into simpler components within the context of probability.

Events

An occurrence or happening, especially one significant in terms of a statistical analysis or probability calculation.

Event

An occurrence or outcome that is of interest in probability and statistics, which can be quantified and analyzed.