On June 30,2015,Rangers Inc

question 24

Multiple Choice

On June 30,2015,Rangers Inc.showed the following data on the equity section of their balance sheet: On July 1,2015,the company declared and distributed a 5% stock dividend.The market value of the stock at that time was $13 per share.Following this transaction,what would be the new balance in Paid-In Capital in Excess of Par-Common?

• A)$286,000
• B)$284,000
• C)$260,000
• D)$344,000

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Definitions:

Average Investor

A term referring to a typical or representative investor, often considered in discussions about investment strategies or market behaviors.

Information Content Effect

The market's reaction to the announcement of new, relevant information, highlighting how the release of information can affect a company's stock price.

Share Price

The current price at which a single share of a company's stock can be bought or sold in the market.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the total number of shares owned by shareholders.