ABC Receives a Stock Dividend of 50 Shares from XYZ

question 90

Multiple Choice

ABC receives a stock dividend of 50 shares from XYZ Company. ABC previously owned 500 shares of XYZ stock that had a cost basis of $3,135. The cost basis per share of XYZ stock is:

• A)$60.
• B)$6.96.
• C)$6.00.
• D)$5.70.

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Definitions:

Secondary Sector

The part of the economy that includes industries involved in the processing, transformation, fabrication, or construction of materials and products from raw materials.

Rational-Legal

An authority system based on legal rules and regulations, and the rationality of law, often associated with modern bureaucracies.

Charismatic Authority

The exercise of power as legitimated through the personal magnetism of individuals who compel people to believe in them and grant them their support.

Traditional Authority

The exercise of power as legitimated by long-established cultural patterns and traditions.