The Value of a Small Stock Dividend Is Computed As

question 35

Multiple Choice

The value of a small stock dividend is computed as:

• A)liquidation value times the number of shares to be distributed.
• B)book value times the number of shares to be distributed.
• C)par value times the number of shares to be distributed.
• D)current market value times the number of shares to be distributed.

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Definitions:

Tying Contract

A requirement imposed by a seller that a buyer purchase another (or other) of its products as a condition for buying a desired product; a practice forbidden by the Clayton Act.

Sales Product

A good or service offered for sale by a business to customers in a market.

Misleading Advertising

Marketing or promotion that deceives consumers about the nature or quality of a product or service.