Nice International Originally Issued 100,000 Shares of Common Stock at a Price

question 34

Multiple Choice

Nice International originally issued 100,000 shares of common stock at a price of $20 per share. A year later, they distributed a 10% stock dividend to shareholders. At the time of the stock dividend, the share price had gone up to $24 per share. Which of the following statements is true?

• A)Nice will record sales revenues of $200,000.
• B)Nice will record a loss of $40,000.
• C)Nice will record a gain of $40,000.
• D)Nice will record neither a gain nor a loss.

---

Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity of it that producers are willing and able to supply at that price.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in the market, leading to a state of balance.

Economic Theory

A conceptual framework explaining how economies operate, including principles on production, distribution, and consumption of goods and services.

Product Supply

The total amount of a product or service that is available for purchase by consumers at a given price point and time.