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.

---

Definitions:

Work Force

consists of all the people engaged in or available for work, either in a specific region or in the entire economy.

Demand Pull Inflation

An economic situation where prices rise because the demand for goods exceeds supply.

Aggregate Supply Curve

A visual depiction illustrating the aggregate amount of products and services that suppliers in an economy are prepared and capable of offering across various price points.

Keynes

Concerns John Maynard Keynes, a British economic theorist whose concepts transformed the study and application of macroeconomics as well as state economic policy.