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

question 90

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 value of the common stock account after the dividend?

• A) $7,000
• B) $8,500
• C) $9,000
• D) $10,500
• E) $14,000

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Definitions:

Standard Distribution Table

A tool used in statistics that shows the probabilities associated with a standard normal distribution.

Wine Magazine's Ratings

Evaluations or classifications provided by wine publications that assess the quality, taste, and value of wines.

Percentile

A statistical measure indicating the value below which a given percentage of observations in a group fall.

Frequency Distribution

A mathematical function showing the number of instances in which a variable attains values within specified intervals.