A Firm Has 30 Million Shares Outstanding, and Each Share

question 61

Multiple Choice

A firm has 30 million shares outstanding, and each share is traded at $100. Also, each shareholder gets a dividend of $2,000 annually. In this case, the market capitalization is

• A) 30,000 shares, that is, 30 million shares/$100.
• B) $200,000, that is, $2,000 × $100.
• C) $3 billion, that is, 30 million shares × $100.
• D) 20:1, that is, $2,000/$100.

Describe the effects of task difficulty and success/failure on attributions.

Recognize common biases in attribution, including the false consensus effect.

Understand the concept of linear relationships between two variables.

Identify and interpret scatter diagrams, including the direction and strength of a relationship.

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Definitions:

Outstanding Checks

Outstanding checks refer to checks that have been written and recorded in the paying account but have not yet been cashed or cleared by the bank.

Bank Statement Adjustment

The act of reconciling the bank statement balance with the book balance by accounting for items that cause discrepancies between the two.

Company Books Adjustment

Modifications made to accounting records, such as correcting errors or updating entries based on new information, to ensure accuracy and compliance.

Bank Service Charge

Fees charged by a bank for the use of its services, such as account maintenance, wire transfers, and overdraft fees.