Younger Company Has Outstanding Both Ordinary Shares and Nonparticipating, Non-Cumulative

question 47

Multiple Choice

Younger Company has outstanding both ordinary shares and nonparticipating, non-cumulative preference shares.The liquidation value of the preference shares is equal to its par value.The book value per share of the ordinary shares is unaffected by

• A)the declaration of a share dividend on preference payable in preference shares when the market price of the preference is equal to its par value.
• B)the declaration of a share dividend on ordinary shares payable in ordinary shares when the market price of the ordinary shares is equal to its par value.
• C)the payment of a previously declared cash dividend on the ordinary shares.
• D)a 2-for-1 split of the ordinary shares.

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Definitions:

Holding Contacts

Electrical contacts designed to maintain power in a circuit after an initial actuation, typically found in relays and starters to keep circuits closed.

Redundant Electrical Path

An additional pathway in an electrical circuit designed to ensure continuous operation even if one path fails.

Holding Contacts

Electrical contacts in a relay or switch that maintain their state until altered by a specific action, used to hold circuits closed or open.

Energized

Describes an electrical component that is supplied with power and is capable of performing its function or operation.