Following Is the Shareholders' Equity Section of the Balance Sheet

question 19

Multiple Choice

Following is the shareholders' equity section of the balance sheet of the Optimum Corporation:
$\begin{array} { l }\text { Share capital: }\\ \text { Common shares, } 100,000 \text { shares authorized, }\\65,000 \text { shares issued } & \underline{\$ 650,000} \\\text { Total share capital } & \$ 650,000 \\\text { Retained earnings } & \underline{349,000} \\\text { Total shareholders' equity } & \underline{\$ 999,000} \\\end{array}$

The common shares are currently selling for $15.50 per share.

The total shareholders' equity after the distribution of a $0.75 per share cash dividend is:

• A) $575,000
• B) $950,250
• C) $627,500
• D) $326,500

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Definitions:

International Environment

The external conditions, pressures, and influences from global forces that impact how businesses operate across different countries.

CAFTA

The Central America Free Trade Agreement, a trade agreement between the United States and Central American countries to reduce trade barriers and increase economic cooperation.

Trade Agreement

A treaty between two or more nations regarding the terms of trade between them, often aiming to reduce tariffs and foster trade.

Central America

A region located in the southernmost part of North America, consisting of seven countries between Mexico to the north and Colombia to the south, known for its diverse geography and cultures.