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

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced; encompasses both fixed and variable costs.

Long-run Equilibrium

A state where all the factors of production in an economy are being used in the most efficient way, leading to a situation where there is no tendency for change.

Perfectly Competitive Market

An economic model marked by a multitude of buyers and sellers, with no barriers to entering or leaving, and identical products.

Average Total Cost

The sum of average fixed costs and average variable costs, representing the total cost of production divided by the quantity of output.