Use the Following Information to Answer the Following Question(s)

question 87

Multiple Choice

Use the following information to answer the following question(s) .
Your firm is planning to pay a 15% share dividend.The market price for the share has been $84.The table below presents the equity portion of your firm's balance sheet before the dividend.
Common share

-StudioNinety's board of directors announced a quarterly dividend of 25 cents.The ex-dividend date is November 3.On November 2, StudioNinety's share closed at $40.00 per share.What is the most likely opening price on November 3?

• A)$40.25
• B)$39.75
• C)$41.00
• D)$39.00

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Definitions:

Debit Postings

Entries made on the left side of an account, increasing the balance of assets and expenses or decreasing liabilities and equity.

Credit Postings

Entries made on the credit side of an account ledger, indicating an increase in liability, revenue, or equity accounts, or a decrease in asset or expense accounts.

Liability Account

An accounting record used to track obligations the company owes to others, such as loans, leases, or accounts payable.

Expense Account

An account in which businesses record and track expenditures related to specific activities, such as travel or entertainment, for accounting purposes.