Bruno's Has 7,000 Shares Outstanding with a Par Value of £1.00

question 58

Multiple Choice

Bruno's has 7,000 shares outstanding with a par value of £1.00 per share and a market value of £12 per share.The statement of financial position shows £7,000 in the ordinary equity account, £58,000
In the additional paid in capital account, and £32,500 in the retained earnings account.The firm just
Announced a 50% (large) stock dividend.What is the market value per share after the dividend?

• A)£6.00
• B)£8.00
• C)£9.00
• D)£10.50
• E)£12.00

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Definitions:

Considerable Emphasis

Significant importance or stress placed on a particular aspect or detail.

State

An organized political community under one government, recognized as sovereign or independent.

Inequality

A situation where resources, opportunities, and rights are distributed unevenly amongst individuals or groups in a society.

Regulate Inequality

Efforts or policies aimed at managing or reducing the disparities in wealth, resources, or opportunities among members of a society.