Gordon Corporation Reported the Following Equity Section on Its Current

question 129

Multiple Choice

Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $11.50 per share. What will the total number of shares issued be after the declaration of a 10% stock dividend?

• A)20,000 common shares
• B)44,000 common shares
• C)40,000 common shares
• D)4,000 common shares

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Definitions:

Death Rate

The ratio of deaths in an area to the population of that area; expressed per 1000 per year.

Birthrate

The number of live births per thousand of population per year.

Biotic Potential

The maximum reproductive capacity of an organism under optimum environmental conditions.

Reproduction

The process of producing a new individual of the same kind.