Which of the Following Would Result from Payment of the Stock

question 43

Multiple Choice

Which of the following would result from payment of the stock dividend?

• A) Total equity would remain at $50,000,000.
• B) Total equity would increase to $57,500,000.
• C) Total equity would decrease to $43,478,261.
• D) The effect on the equity account would depend on the market's reaction to the dividend.

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Definitions:

Rental Price of Apartments

The cost charged to tenants for leasing living space on a monthly or annual basis.

Property Taxes

Taxes levied on property owners based on the assessed value of their property, often used to fund local services and infrastructure.

Unexpected Increase

An unforeseen rise in a particular variable or metric, which could pertain to costs, prices, demand, or any other economic factor.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.