Braco Has 40,000 Shares of $100 Par Value Common Stock

question 20

Multiple Choice

Braco has 40,000 shares of $100 par value common stock outstanding, and 10,000 shares in the treasury. The number of additional shares that would be issued in a 5% stock dividend is:

• A) 500.
• B) 1,000.
• C) 2,000.
• D) 2,500.

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Definitions:

AFL

The American Federation of Labor, a national federation of labor unions in the United States.

Small Employers

Businesses with a relatively small number of employees, which may face different challenges and regulatory standards than larger organizations.

Manufacturing Companies

Businesses involved in the production of goods in large quantities, typically using machinery and involving the assembly of components or the processing of raw materials.

AFL-CIO Split

The division within the American Federation of Labor and Congress of Industrial Organizations, a major trade union center in the United States, often referring to historical rifts or disputes leading to the creation of separate labor federations.