The Mining Co

question 340

Multiple Choice

The Mining Co. has 110,000 shares of stock outstanding. The current market value of the firm is $5.5 million. The company has retained earnings of $1.8 million, paid in surplus of $2.2 million, and
A common stock account value of $.11 million. The company is planning a 5-for-1 stock split. What
Will the retained earnings account value be after the split?

• A) $0.36 million
• B) $0.45 million
• C) $1.8 million
• D) $7.2 million
• E) $9.0 million

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Definitions:

Reliable

Worthy of trust; consistently good in quality or performance; able to be depended on.

Curse Of Knowledge Effect

A cognitive bias that occurs when someone, knowing something, cannot remember or imagine not knowing it, leading to communication challenges.

Negative Emotion

A feeling that is generally considered to be unpleasant or detrimental, such as sadness, anger, or fear.

Social Norms

Informal understandings that govern the behavior of members of a society or group, dictating what is considered acceptable.