Randall's Has 34,000 Shares of Stock Outstanding with a Par

question 1

Multiple Choice

Randall's has 34,000 shares of stock outstanding with a par value of $1 per share. The market value is $23 per share. The balance sheet shows $152,000 in the capital in excess of par account, $34,000 in the common stock account, and $67,500 in the retained earnings account. The firm just announced a 5 percent (small) stock dividend. What will be the balance in the retained earnings account after the dividend?

• A) $28,400
• B) $29,500
• C) $30,500
• D) $27,800
• E) $32,500

Recognize the role of step-fixed costs and their implications on cost accounting and management decisions.

Understand the historical impact of industrial activities on the environment and the legal responses to environmental damage.

Comprehend the concept of efficient adaptation strategies for mitigating the effects of global warming.

Grasp the mechanisms and efficiency of different methods to reduce industrial pollution emissions.

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Definitions:

Price/Earnings

A valuation ratio of a company's current share price compared to its per-share earnings, used to assess if a stock is over or undervalued.

Ratio Analysis

A technique of analyzing the strength of a company by forming (financial) ratios out of sets of numbers from the financial statements. Ratios are compared with the competition, recent history, and the firm’s plan to assess the quality of its performance.

Stable Company

Refers to a firm with consistent performance, low volatility in its stock price, and predictable financial returns, making it a less risky investment.

Growing Rapidly

A phase characterized by a significant increase in a company's revenue, profits, or size within a short period.