Murphy's,Inc

question 30

Multiple Choice

Murphy's,Inc. has 10,000 shares of stock outstanding with a par value of $1.00 per share. The market value is $8 per share. The balance sheet shows $32,500 in the capital in excess of par account,$10,000 in the common stock account,and $42,700 in the retained earnings account. The firm just announced a 10% (small) stock dividend. What will the balance in the retained earnings account be after the dividend?

• A) $34,700
• B) $35,700
• C) $42,700
• D) $49,700
• E) $50,700

---

Definitions:

Downward-Sloping Demand

Describes the general tendency for the demand for a good or service to decrease as its price increases.

Monopolistic Competitors

Firms in a market structure where many companies sell products or services that are similar but not identical, allowing for competition based on quality, price, and branding.

Linear Demand Curve

A demand curve that shows a constant relationship between price and quantity demanded, typically resulting in a straight line when graphed.

Total Revenue

The overall amount of money generated by a business from selling its goods or services, without subtracting any costs.