The Per Share Amount Normally Assigned by the Board of Directors

question 320

Multiple Choice

The per share amount normally assigned by the board of directors to a large share dividend is

• A) the market value of the shares on the date of declaration.
• B) the average price paid by shareholders on outstanding shares.
• C) the par or stated value of the shares.
• D) zero.

---

Definitions:

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a homogenous product.

Cost Data

Details about the costs associated with creating a product or service, such as the expenses for materials, workforce, and indirect costs.

Purely Competitive Producer

A producer in a market structure characterized by many small firms, homogeneous products, and free entry and exit, leading to zero economic profit in the long run.

Economic Profit

The differential amount left after subtracting all types of costs, both seen and unseen, from the total income.