Jay-Cee Corporation Had 20,000 Shares of $4 Par Value Common

question 202

Multiple Choice

Jay-Cee Corporation had 20,000 shares of $4 par value common stock outstanding on January 1.On January 20,the company purchased 2,000 of its stock for $16 per share.On July 3,the company reissued 1,000 of the shares at $20 per share.Jay-Cee uses the cost method to account for its treasury stock.Assume the company paid a dividend of $5 per share on August 3.What is the total amount of the dividends that would be paid to the common stockholders?

• A) $95,000
• B) $100,000
• C) $90,000
• D) $76,000

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Definitions:

Supply Function

An equation or curve demonstrating the quantity of a product that suppliers are willing to produce and sell at various price points, considering other factors constant.

Price Floor

A minimum price set by the government or a regulatory body, below which a good or service cannot legally be sold.

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product, good, commodity, or service.

Supply Function

A mathematical relation showing the amount of goods a supplier is willing and able to provide to the market at various prices, holding all other factors constant.