Stock Dividend-Effect on Book Value

question 48

Essay

Stock dividend-effect on book value
Olympic Corporation has 75,000 shares of $1 par value stock outstanding.The largest single stockholder is Lou Cheng,who owns 6,000 shares.On December 31,the total assets of the company amount to $4,360,000 and total liabilities to $2,230,000.On that date,the board of directors declared a stock dividend of one new share for each five shares outstanding.Compute the following:

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.