Assume That a Firm Had Shareholders' Equity on the Balance

question 42

Multiple Choice

Assume that a firm had shareholders' equity on the balance sheet at a book value of $1,200 at the end of 2010.During 2011 the firm earns net income of $900,pays dividends to shareholders of $400,and issues new stock to raise $250 of capital.The book value of shareholders equity at the end of 2011 is:

• A) $2,750
• B) $250
• C) $1,450
• D) $1,950

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Definitions:

Sensation Seeking Scale

A psychological tool developed to measure an individual's propensity to seek varied, novel, complex, and intense sensations and experiences.

Expected Success

The anticipation or belief that one will successfully achieve a given task or goal based on previous experiences or statistical likelihood.

Reinforcement

Reinforcement is a concept in behavioral psychology involving the use of stimuli to increase the likelihood of a specific response; it can be positive (adding a stimulus) or negative (removing a stimulus).

Primary and Secondary Needs

Basic and advanced levels of human needs, where primary needs are physiological, such as food and shelter, and secondary needs include social and psychological aspects.