Which of the Following Actions Will Increase the Common Stock

question 10

Multiple Choice

Which of the following actions will increase the Common Stock account?

• A) cash dividend
• B) stock split
• C) stock dividend declared and distributed
• D) purchase of treasury stock

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Definitions:

Project Profitability Index

A financial metric used to evaluate the attractiveness of a project or investment, calculated as the present value of future cash flows divided by the initial investment.

Investment Proposals

Plans or suggestions put forward for consideration by stakeholders with the objective of investing resources with the expectation of generating returns.

Discount Rate

The discount rate applied in DCF analysis for calculating today's value of future cash flows.

Salvage Value

The projected value of an asset upon reaching the end of its operational lifespan.