CBA Inc. has 250.000 shares outstanding with a $5 par value
Q1: CBA Inc. has 250.000 shares outstanding with a $5 par value. The shares were issued for $14. The stock is currently selling for $34. CBA has $5,080,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%. What will be the capital in excess of par account after the stock dividend?
(a) $7,685,000 (b) $2,685.000 (c) $8 10,000 (d) $2,385,000
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Q2: At what payout percentage is a stock dividend considered a stock split?
(a) 10% (b) 15% (c) 25% (d) 33%
Q3: In the initial stage (Stage I), the corporation: (a) Has a product yet to be accepted in the marketplace (b) Anticipates rapid growth in sales and earnings (c) Needs all its earnings for reinvestment in new assets ( d) Al 1 of the above
