USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 35

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Assume you bought 100 shares of NewTech common stock on January 15, 2003 at $50.00 per share and sold it on January 15, 2004 for $40.00 per share.
-Refer to Exhibit 1.1. What was your holding period return?

• A) -10%
• B) -0.8
• C) 25%
• D) 0.8
• E) -20%

Compute and interpret the book value per share of a company’s common stock.

Understand the significance of dividend per share and how it relates to market price per share and earnings per share.

Recognize the accounting entries related to stock transactions including issuance, dividend payments, and acquisition of assets through stock.

Understand the determination and impact of declaring cash dividends on shares.

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Definitions:

Consideration

Something of value exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

Power of Attorney

An official paper authorizing an individual (the agent) to handle legal or financial issues for another person (the principal).

Legal Document

A document that states some contractual relationship or grants some right, enforceable by law.

Contractual Acts

The actions or deeds performed under the terms of a contract or agreement between parties.