Question: 29. A small stock dividend: A. does not affect the capital in excess of par value account. B. increases the common stock account by the

29. A small stock dividend:

A. does not affect the capital in excess of par value account.

B. increases the common stock account by the market price of each share issued.

C. affects the par value per share but not the equity account balances.

D. reduces retained earnings by the market price of each share issued.

E. reduces cash by the total market value of the issued shares.

32.

An investor is more likely to prefer a high dividend payout if that investor:

A. pays taxes on dividends but not on capital gains

B. is a corporation

C. pays a higher tax rate than the dividend payer

D. does not require additional cash flows

E. has a high marginal tax rate on dividends

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Question 4 of 31 - 12 View Policies Current Attempt in Progress Compton Inc. made a $500 ordinary repair to a piece of equipment. Compton's accountant debited this amount to the asset a Equipment,...

Q:

A retail store credited the Sales Revenue account for the sales price and the amount of sales tax on sales. If the sales tax rate is 5% and the balance in the Sales Revenue account amounted to...

Q:

Mar 8: Sold 3,000 shares of treasury stock for $12 per share. Journal Entry Date Accounts Debit Credit 36,000 Mar8| Cash Treasury stock Paid-in capital, treasury stock 12,000 24,000 Sep 28: Declared...

Q:

SLACK TECHNOLOGIES 40 Point Problem Equity Portion of Balance Sheet Common Stock 5,000,000 shares authorized, 1,500,000 issued $180,000 Capital in excess of par value $15,000,000 Treasury Stock on...

Q:

Jartz, Inc., at December 31, 2017, reported 900,000 shares of $1 par common stock authorized with 98,000 shares is s of par-common had a balance of $330,000. Retained earnings had a balance of...

Q:

Type or paste question here Equity Portion of Balance Sheet Common Stock 5,000,000 shares authorized, 1,500,000 issued $180,000 Capital in excess of par value $15,000,000 Treasury Stock on Common...

Q:

1. A stock produced total returns of 9.78%, 13.61%, 1.19%, and -4.90% over the past four years, respectively. What is the variance on this set of returns? a) 0.0070 b) 0.0088 c) 0.0138 d) 0.0163 2....

Q:

Angie's just declared a 5 percent (small) stock dividend. Prior to the dividend, the stock had a $1 par value per share, a $15 book value per share and a $20 market value per share. As a result of...

Q:

Marigold Corp. purchased 3700 shares of its own previously issued $10 par common stock for $111000. As a result of this event, Marigold's Common Stock account decreased $37000. Marigold's total...

Q:

Required information [The following information applies to the questions displayed below.] The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December...

Q:

Differentiate between conspiracy and intimidation.

Q:

An insurance company employs agents on a commission basis. It claims that in their first-year agents will earn a mean commission of at least $40,000 and that the population standard deviation is no...

Q:

Approximately what percentage of assets in equity mutual funds were indexed in 2 0 1 9 ? Multiple Choice 1 0 % 1 5 % 2 0 % 3 0 %

Q:

The q , is the combination of advertising, personal selling, sales promotion, social media, and public relations and is used to reach the target market and fulfill an organization's overall promotion...

Q:

5.6 Describe alternatives to recruitment?

Q:

5.4 Identify external recruitment sources.

Q:

As part of the buyout package, the company will continue to pay its share of health insurance during the severance period. If Miller Furniture pays $100 per week for each employee to have health...