The Declaration and Issuance of a Share Dividend Larger Than

question 103

Multiple Choice

The declaration and issuance of a share dividend larger than 25% of the shares previously outstanding

• A)increases ordinary shares outstanding and increases total equity.
• B)decreases retained earnings but does not change total equity.
• C)may increase or decrease share premium but does not change total equity.
• D)increases retained earnings and increases total equity.

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Definitions:

Buick Owner

A person who owns a vehicle manufactured by Buick, which is a division of the American automobile manufacturer General Motors.

Dodge Owner

A person or entity that owns a vehicle manufactured by Dodge, an American brand of automobiles.

Reservation Price

The maximum amount a buyer is willing to pay for a good or service, beyond which they will not make the purchase.

Utility Function

A mathematical representation that describes how different bundles of goods or states of the world yield different levels of satisfaction or utility to an individual.