Dillon Corporation Splits Its Common Stock 2 for 1, When

question 178

Multiple Choice

Dillon Corporation splits its common stock 2 for 1, when the market value is $40 per share. Prior to the split, Dillon had 50,000 shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock

• A) remains the same.
• B) is reduced to $2 per share.
• C) is reduced to $5 per share.
• D) is reduced to $20 per share.

Recognize techniques for creating and splitting tables, as well as adjusting table properties and layouts.

Understand operations for manipulating multilevel lists and their indentation levels.

Grasp the concept of integrating visual elements (like custom bullets) and text effects to enhance document presentation.

Understand the concept of separation between church and state in the U.S. Constitution.

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Definitions:

Adequacy Of Consideration

The fairness of the value exchanged in a contract, though not necessarily equal in monetary terms.

Court

An institution established by the government to settle disputes through a legal process, providing a forum where evidence is presented and legal judgments are made.

Consideration

Something of value (such as goods, services, or money) that is exchanged between parties in a contract, making the agreement legally binding.

Preexisting Duty Rule

A principle in contract law that holds an existing duty does not constitute consideration for a new promise.