Built Rite Corp

question 74

Multiple Choice

Built Rite Corp.is evaluating an extra dividend versus a share repurchase.In either case,$5,500 would be spent.Current earnings are $0.80 per share,and the stock currently sells for $33 per share.There are 250 shares outstanding.Ignore taxes and other imperfections.You own one share of stock in this company.If the company issues the dividend,your total investment will be worth ____ as compared to ____ if the company opts for a share repurchase.

• A)$11; $11
• B)$11; $22
• C)$11; $33
• D)$23; $33
• E)$33; $33

Understand the necessity and characteristics of an effective code of ethics.

Identify and explain major legal and ethical corporate scandals.

Comprehend the concept of corporate social responsibility (CSR) and its components.

Relate management practices to the changing social, political, economic, and technological environments.

---

Definitions:

FOB Destination

A shipping term indicating that the seller is responsible for the goods and the shipping cost until the items reach the buyer's specified location.

Net Sales

Total sales revenue after deducting returns, allowances for damaged or missing goods, and discounts.

Cost of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold in a company.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the financial performance of a company's core business activities.