Cambridge Corp

question 103

Multiple Choice

Cambridge Corp.declared a 5% stock dividend.Will Wales owned 300 shares of Cambridge before the dividend.Cambridge shares were trading at $21 before the dividend.Which of the following will be true after the dividend is distributed?

• A)The total market value of Will's shares was $6,300 before the stock dividend but will probably decrease after the stock dividend.
• B)The total market value of Will's shares was $6,300 before the stock dividend and $6,615 after the stock dividend.
• C)Will owned 300 shares before the stock dividend and 315 shares after the stock dividend.
• D)Fewer investors will be able to buy Cambridge shares.

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Definitions:

Innate Ability

Innate ability refers to natural talents or capabilities that an individual is born with, as opposed to skills developed through learning or experience.

Redundancy

The state of being not or no longer needed or useful, often referring to repetitive or unnecessary information or the elimination of jobs in a workforce.

Suspense

A state of mental uncertainty, excitement, or anxiety regarding the outcome of certain events or actions.

Pauses

Short periods of silence strategically used in speech to enhance understanding, create emphasis, or allow the listener to process information.