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:

Exuberant

Filled with or characterized by a lively energy and excitement.

Amygdala

A component of the brain's limbic system, involved in processing emotions, fear responses, and memory formation.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, crucial for decision making, social behavior, and personality expression.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It controls basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).