Cookies and Cream Has 9,000 Shares of Stock Outstanding at a Market

question 69

Multiple Choice

Cookies and Cream has 9,000 shares of stock outstanding at a market price of $14.65 per share.What will the price per share be after the firm declares a 12 percent stock dividend? Ignore taxes and market imperfections.

• A)$12.24
• B)$13.08
• C)$14.65
• D)$14.96
• E)$15.00

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Definitions:

Unrealised Profit

Profit that has been generated but not yet realized through a transaction, such as an increase in value of an investment that has not yet been sold for cash.

Opening Inventory

The value of a company's inventory at the beginning of an accounting period, which is carried over from the end of the previous period.

Tax Effect

The impact of tax laws and regulations on an individual's or company's financial decisions and situations, including the calculation of tax liabilities.

Carrying Amount

The value at which an asset is recognized in the balance sheet after accounting for depreciation, amortization, and impairment losses.