Jackson Corporation Paid a Dividend of $1

question 54

Multiple Choice

Jackson Corporation paid a dividend of $1.50 per share.It forecasted a $2.50 per share in earnings and had a stock price of $45.Determine the stock price if Cormex declared a 15% stock dividend.

• A)$33.88
• B)$36.21
• C)$39.13
• D)$42.28

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Definitions:

Collections

The process of pursuing payments of debts owed by individuals or businesses, often managed by a department or an agency.

Credit Sales

Sales made on credit, where the payment is received after the delivery of goods or services.

Operating Activities

Business activities related directly to the production and delivery of goods and services, which are reflected in a company's income and cash flow from operations.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and repaying debt, as part of a company's cash flow statement.