Excelsior Company's Capital Structure Is as Follows ? the Current Market Price of the Firm's Common Stock

question 33

Multiple Choice

Excelsior Company's capital structure is as follows: $\begin{array}{lr}\text { Common stock ( } \$ 2 \text { par value, } 2,000,000 \text { shares) } & \$ 4,000,000 \\\text { Contributed capital in excess of par } & 16,000,000 \\\text { Retained earnings } & 23,000,000\\\text { Total common stockholders' equity }&\$43,000,000\end{array}$ ? The current market price of the firm's common stock is $30. Assuming the firm declares a 10% stock dividend, determine the balance in the contributed capital in excess of par and retained earnings accounts.

• A) $22,000,000; $17,000,000
• B) $21,600,000; $17,000,000
• C) $21,600,000; $23,000,000
• D) $17,000,000; $21,600,000

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Definitions:

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An extended course of therapy or medical intervention designed to manage chronic conditions or diseases over a significant period.

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A method of inducing changes in brain activity through direct or indirect stimulation of the brain, used in the treatment of certain neurological and psychiatric conditions.

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A kind of psychotherapy that treats mental, emotional, and psychological problems by identifying and challenging dysfunctional thoughts.

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Ongoing treatment given to patients, typically after initial therapy, to prevent recurrence of a disease or to maintain a current health status.