A Corporation with $10 Par Common Stock Issues a Large

question 158

Multiple Choice

A corporation with $10 par common stock issues a large stock dividend. The capitalization of retained earnings is equal to:

• A) The par value of the shares to be distributed.
• B) There is no capitalization of retained earnings in the case of a large stock dividend.
• C) The market value of the shares outstanding.
• D) The market value of the shares to be distributed.
• E) The par value of the shares outstanding.

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Techniques and software applications used to evaluate and examine financial statements and trends for business analysis and decision-making.