Which of the Following Show the Proper Effect of a Stock

question 242

Short Answer

Which of the following show the proper effect of a stock split and a stock dividend? $\begin{array}{ccc}&&&&& \text { Item } &&&&& \text { Stock Split } & \text { Stock Dividend } \\\end{array}$
A) $\begin{array}{ccc}\text { Total paid-in capital } & &&\text { Increase } &&& \text { Increase } \\\end{array}$
B) $\begin{array}{ccc}\text { Total retained earnings } && \text { Decrease } && \text { Decrease } \\\end{array}$
C) $\begin{array}{ccc} \text { Total par value (common) } & \text { Decrease }& & \text { Increase } \\\end{array}$
D) $\begin{array}{ccc}\text { Par value per share } &&&& \text { Decrease } & &\text { No change } \\\end{array}$

• A)\(\begin{array}{ccc}\text { Total paid-in capital } & &&\text { Increase } &&& \text { Increase } \\\end{array}\)
• B)\(\begin{array}{ccc}\text { Total retained earnings } && \text { Decrease } && \text { Decrease } \\\end{array}\)
• C)\(\begin{array}{ccc} \text { Total par value (common) } & \text { Decrease }& & \text { Increase } \\\end{array}\)
• D)\(\begin{array}{ccc}\text { Par value per share } &&&& \text { Decrease } & &\text { No change } \\
• \end{array}\)

Recognize the implications of different pricing methods on profit margins and profitability.

Evaluate the suitability of specific pricing strategies for different types of products and market conditions.

Explain the concept of target return on investment as it relates to pricing decisions.

Understand the utilization of cost-plus-fixed-fee and cost-plus-percentage-of-cost pricing in contract agreements.

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Definitions:

Procedural Rules

Are the guidelines and regulations that dictate how the legal process and judicial proceedings should be carried out.

Motion to Dismiss

A pleading in which a defendant asserts that the plaintiff’s claim fails to state a cause of action (that is, has no basis in law) or that there are other grounds on which a suit should be dismissed.

Voir Dire

A French phrase meaning, literally, “to see, to speak” that refers to the jury-selection process. In voir dire, the attorneys question prospective jurors to determine whether they are biased or have any connection with a party to the action or with a prospective witness.

Request for Admission

A legal procedure in which one party asks another party to formally admit the truth of certain facts before trial.