Evenglade Corp Has 1,000 Shares Outstanding Priced at $10 a Share.The

question 13

Multiple Choice

Evenglade Corp has 1,000 shares outstanding priced at $10 a share.The company is unsure whether to pay out $1 a share as a dividend or to use the money to repurchase stock.If it pays a dividend,what happens to the stock price? If it repurchases,how many shares will remain and at what price?

• A) After the dividend payment stock price falls to $9. If Evenglade repurchases, 900 shares remain and the share price falls to $9.
• B) After the dividend payment stock price falls to $9. If Evenglade repurchases, 800 shares remain and the share price stays at $10.
• C) After the dividend payment stock price falls to $9. If Evenglade repurchases, 900 shares remain and the share price stays at $10.
• D) After the dividend payment stock price stays at $10. If Evenglade repurchases, 900 shares remain and the share price rises to $11.11.

Recognize the implications of using specific inventory costing methods on financial statements.

Identify and describe common and uncommon inventory costing assumptions.

Evaluate the practicality and implications of different inventory methods on business operations.

Understand the effect of inventory costing decisions on gross profit calculation.

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Definitions:

European Goods

Products manufactured in Europe that were historically traded or brought to other regions, often influencing global trade patterns and local economies.

Racism

Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one's own race is superior.

Colonies

Territories under the political and economic control of another country, often established during periods of exploration and exploitation.

North American Slave Trade

The transatlantic trade that transported African peoples to North America primarily to serve as enslaved laborers, largely ending in the early 19th century though slavery itself was not abolished until later.