Samuel's Has 7,000 Shares of Stock Outstanding with a Par

question 33

Multiple Choice

Samuel's has 7,000 shares of stock outstanding with a par value of $1.00 per share and a market value of $12 per share. The balance sheet shows $7,000 in the common stock account,$58,000 in the capital in excess of par account,and $32,500 in the retained earnings account. The firm just announced a 50% (large) stock dividend. What is the market value per share after the dividend?

• A) $6.00
• B) $8.00
• C) $9.00
• D) $10.50
• E) $12.00

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Definitions:

Calm Approach

Handling situations or interactions in a serene, composed manner without showing agitation or emotional distress.

Filters

Tools or processes used to remove unwanted elements from data, or to select specific information based on certain criteria.

Biases

Prejudices in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair.

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A communication technique involving fully concentrating, understanding, responding and then remembering what is being said.