Which of the Following Statements Is Correct for a Firm

question 76

Multiple Choice

Which of the following statements is correct for a firm with 100,000 outstanding shares and earnings per share of $6 if retained earnings were just adjusted downward by $50,000?

• A)A $5.50 dividend per share was paid
• B)A $6.50 dividend per share was paid
• C)Net earnings equal $650,000
• D)Total dividends paid equal $50,000 retained earnings = net income less dividends
• ($50,000) = ($6 x 100,000) less dividends
• $450,000 = dividends

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Definitions:

Ethical Decision

A choice made based on moral principles and values, considering the impact on all stakeholders involved.

Transparency

Refers to the quality of being easily seen through or detected; in business and governance, it often implies openness, communication, and accountability.

Business Communications

The exchange of information and ideas between people within and outside an organization through various mediums to achieve business goals.

Social Communication Model

A framework for understanding how individuals use various methods of communication to maintain social relationships.