The B Spaniel Company Has Common Stock with a $5 Par

question 3

Multiple Choice

The B. Spaniel Company has Common Stock with a $5 par value. 100,000 shares were authorized and 25,000 shares were issued. Common stock is currently selling at $13 per share. The number of shares of common stock authorized and issued after the distribution of a 15% common stock dividend is:

• A)100,000 and 28,750.
• B)115,000 and 25,000.
• C)100,000 and 25,000.
• D)115,000 and 28,750.

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Definitions:

Equal Installments

A method of loan repayment where the borrower pays the lender a constant amount of money periodically, covering both principle and interest.

Repay

The action of paying back borrowed money to the lender.

Compounded Annually

Describes the method where the interest earned in one period is added to the principal sum, and the total becomes the basis for calculating interest in the next period, done once a year.

Start Business

The process of establishing a new enterprise or venture, involving planning, financing, and legal considerations.