The Directors of Corel Corporation, Whose $40 Par Value Common

question 28

Multiple Choice

The directors of Corel Corporation, whose $40 par value common stock is currently selling at $50 per share, have decided to issue a stock dividend. The corporation has an authorization for 200,000 shares of common, has issued 110,000 shares of which 10,000 shares are now held as treasury stock, and desires to capitalize $400,000 of the retained earnings balance. To accomplish this, the percentage of stock dividend that the directors should declare is

• A) 10
• B) 8
• C) 5
• D) 2

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Definitions:

Conservative Reaction

The response or resistance to changes or innovations, aiming to maintain traditional or existing conditions.

Human Rights

Universal rights that are believed to belong to every person, such as the right to freedom, equality, and a dignified life, regardless of nationality, sex, ethnicity, religion, or language.

Bill C-38

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Conflict Theory

A theoretical framework that views society as composed of groups competing for limited resources.