You Currently Own 80 Shares of XYZ Stock That Is

question 77

Multiple Choice

You currently own 80 shares of XYZ stock that is selling for $40 a share. If the firm grants you an additional 4 shares, then the firm has declared a:

• A) stock dividend of 5%.
• B) cash dividend of $1 per share.
• C) stock repurchase of 5%.
• D)cash dividend of $1.60 a share which you reinvested in shares.

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Definitions:

Sales Tax Rate

The percentage of sales price that is added to the sale of goods and services, to be collected by the seller and passed on to the government.

Total Receipts

The total amount of money received by a company during a particular period from all sources.

Unearned Subscription Revenue

Unearned subscription revenue is a liability that represents payments received from customers for services yet to be delivered.

Subscription Revenue

Income received by a company for providing ongoing services or access to products over a subscription period.