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Danbers Co

question 114

Essay

Danbers Co. owned 75% of the common stock of Renz Corp. How does the issuance of a 5% stock dividend by Renz affect Danbers and the consolidation process?


Definitions:

Bond Yield

The return an investor realizes on a bond, calculated as the annual interest payment divided by the bond's current market price.

Face Value

The nominal value printed on a bond, currency, ticket, or other financial instrument, representing its legal value rather than market value.

Market Price

The present rate at which a service or asset is available for purchase or sale.

Investment Option

A financial vehicle or asset that individuals can allocate capital towards with the expectation of a future return.

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