An Individual Shareholder Owns 3,000 Shares of Baxter Corporation Common

question 76

Multiple Choice

An individual shareholder owns 3,000 shares of Baxter Corporation common stock with a basis of $10 per share. She receives a nontaxable 5% stock dividend. The basis per share of the common stock after the stock dividend is

• A)$9.00.
• B)$9.50.
• C)$9.52.
• D)$10.00.

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Definitions:

Rhizoids

Thread-like structures in non-vascular plants, fungi, and algae that absorb water and nutrients and anchor the organism to a substrate.

Nonvascular Plants

Bryophytes, such as mosses and liverworts, that have no vascular tissue and either occur in moist locations or have special adaptations for living in dry locations.

Thallus

The undifferentiated vegetative tissue of some organisms, such as algae, fungi, lichens, and liverworts, not divided into leaves, roots, or stems.

Liverwort

A type of non-vascular plant found in moist habitats, part of the bryophyte family, which includes mosses and hornworts.