If a Firm Has Retained Earnings of $20 Million, a Common

question 68

Multiple Choice

If a firm has retained earnings of $20 million, a common shares account of $40 million, and additional paid-in-capital of $10 million, how much would be transferred in (or out) of these accounts in response to a 30 percent stock dividend, respectively?

• A) − 30 percent, 0 percent, + 30 percent
• B) − 30 percent, + 30 percent, 0 percent
• C) − 75 percent, + 30 percent, + 30 percent
• D) − 75 percent, + 37.5 percent, + 37.5 percent

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Definitions:

Fuel Economy

A measurement of how far a vehicle can travel on a given amount of fuel, typically expressed in miles per gallon (mpg) or liters per 100 kilometers (L/100km).

Environmental Protection Agency

A U.S. federal government agency dedicated to protecting human health and the environment by regulating and enforcing laws related to air and water quality, hazardous waste, and more.

Interquartile Range

The difference between the upper (75th percentile) and lower (25th percentile) quartiles, measuring the spread of the middle half of a dataset.

Workdays

The days of the week designated for regular employment, traditionally Monday through Friday in many cultures.