Assume That a Firm Had Shareholders' Equity on the Balance

question 41

Multiple Choice

Assume that a firm had shareholders' equity on the balance sheet at a book value of $1,500 at the end of 2010.During 2011 the firm earns net income of $1,900,pays dividends to shareholders of $200,and issues new stock to raise $500 of capital.The book value of shareholders' equity at the end of 2011 is:

• A) $2,750
• B) $250
• C) $1,450
• D) $3,700

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Definitions:

Collecting Data

The process of gathering and measuring information on variables of interest in an systematic fashion.

Expensive

Describes an item or service that has a high cost relative to its value or compared to similar items or services.

Netnography

A qualitative research methodology that studies cultures and communities through their online interactions and digital communications.

Online Communities

Virtual spaces where people with shared interests or goals come together to communicate, share information, and build relationships.