Apira Has 2,000 Shares of Common Stock Outstanding

question 42

Multiple Choice

Apira has 2,000 shares of common stock outstanding. A stockholder has 100 shares. If Apira distributes a 20% stock dividend, how many shares of Apira will the stockholder have?

• A) 120
• B) 105
• C) 100
• D) 20

---

Definitions:

Prices

The amount of money required to purchase goods or services, often determined by supply and demand dynamics.

Utility-maximizing Combination

This refers to a situation where a consumer selects a combination of goods and services that provides the highest level of satisfaction or utility, given their budget constraint.

Marginal Utilities

The increased contentment or value obtained by a consumer through the consumption of one extra unit of a good or service.

Diminishing Marginal Utility

The principle that as a person increases consumption of a product, there is a decline in the marginal utility that person derives from consuming each additional unit of that product.