F Co Declares a 5% Stock Dividend

question 138

Multiple Choice

F Co. declares a 5% stock dividend. If the market price at declaration is $12 per share, a shareholder with 110 shares likely would receive:

• A) Five additional shares.
• B) Fractional share rights for 5½ shares.
• C) Five additional shares and $6 in cash.
• D) Five additional shares and a fractional share right for 2½ shares.

---

Definitions:

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or associations rather than logical argumentation to influence individuals.

Role Playing

A method of learning or therapy involving acting out roles in particular scenarios, often used to practice behaviors or understand others' perspectives.

Social Pressure

The influence that is exerted on individuals by others, or by society as a whole, to act or think in certain ways.

Inconsistent With Attitudes

A psychological state where an individual's behaviors do not align with their beliefs or feelings.