A Small Stock Dividend of 1,000 Shares Was Declared and Distributed

question 90

Multiple Choice

A small stock dividend of 1,000 shares was declared and distributed during 2018.What was the market price per share on the date of declaration?

• A)$8.00 per share
• B)$2 per share
• C)$16 per share
• D)$28.00 per share

---

Definitions:

Satisfactory Return

A level of profit or return on investment that meets or exceeds the expectations or benchmarks of an investor or manager.

Capital Budgeting

The process a business undertakes to evaluate potential major projects or investments.

Payback Period

The amount of time it takes for an investment to generate enough cash flow to recoup its original cost.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specified period.