CCR Stock Is Currently Trading at $63 Per Share

question 87

Multiple Choice

CCR stock is currently trading at $63 per share.If CCR issues a 25% stock dividend,what would its new share price be?

• A)$50.40
• B)$78.75
• C)$15.75
• D)$252.00
• E)$63.00

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Definitions:

Subchapter S Corporation

A type of corporation in the U.S. that elects to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code, allowing income to be passed through to shareholders and taxed at an individual level.

Shareholder Basis

The amount invested in a company by its shareholders plus any earnings retained by the company.

Earnings and Profits

A measure used for tax purposes, representing a corporation's net income plus or minus certain tax-preferred items.

Cash Dividend

A payment made by a corporation to its shareholders, usually in cash, out of its profits or reserves.