If any of the following occurs when retained profits are increased?Choose one:a. Declaring a cash dividendb. Declaring a 10% common stock dividendc. Paying a previously declared cash dividendd. Purchasing treasury stocke. None of the above

its assets, debts, equity (equity) equity, short- and long-term loans, and other related items A…

Answered: If any of the following occurs when…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 36MCQ

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Similar questions

What is the difference between a stock dividend and a stock split? As a stockholder, would you prefer to see your company declare a 100% stock dividend or a 2-for-1 split? Assume that either action is feasible.
Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.
Which of the following events increases retained earnings? Select one: a. Declaring a cash dividend b. Declaring a 10% common stock dividend c. Paying a previously declared cash dividend d. Purchasing treasury stock e. None of the above
Which of the following results in increasing basic earnings per share? Select one: a. Paying more than carrying value to retire outstanding bonds. b. Issuing cumulative preferred stock. c. Repurchase of common shares. d. Issuing a 2:1 stock split. e. All of these increase basic earnings per share.
When a stock dividend of less than 20−25% is declared and the market value exceeds the par or stated value of the shares, an amount equal to the market value of the shares to be distributed should be charged (debited) to which of the following accounts? Group of answer choices Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Par Capital Stock
Flexsteel is giving out a large stock dividend. This would: A. Results in a transfer of retained earnings to the common stock account B. Reduces the par value per share by the percentage of the additional shares issued. C. Is accounted for in exactly the same manner as a stock split D. Results in a transfer of retained earnings to common stock and additional paid in capital
Which of the following occurs when a 10 percent stock dividend is paid? * the stock's price is increased the firm's equity is increased the stock's par value is decreased the firm's retained earnings decrease
Which of the following will reduce Retained Earnings? a. Declaration of a stock dividendb. Payment of a cash dividendc. Profit for the periodd. None of these
Which of the following occurs when a 10 percent stock dividend is paid? * A.the firm's equity is increased B.the stock's price is increased C.the stock's par value is decreased D.the firm's retained earnings decrease
Which of the following transactions will increase thereturn on equity?a. Declare and issue a stock dividend.b. Split the stock 2-for-1.c. Repurchase the company’s stock.d. None of the above.
Which of the following statements best describes how a change in a firm’s stock price would affect a stock’s capital gains yield? The capital gains yield on a stock that the investor already owns has an inverse relationship with the firm’s expected future stock price. The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price. Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $2.25 at the end of the year. Its dividend is expected to grow at a constant rate of 9.00% per year. If Walter’s stock currently trades for $26.00 per share, what is the expected rate of return? Which of the following statements will always hold true? The constant growth valuation formula is not appropriate to use for zero growth stocks. It will never be appropriate for a rapidly growing startup company that pays no dividends at present—but is expected to…
All of the following is true about a Stock dividend except, Select one: a. The stock price declines proportionally after the dividend is paid b. The pre-dividend price is higher than the post-dividend price c. It is commonly expressed as a percentage d. The number of outstanding shares will decrease after a stock dividend.

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If any of the following occurs when retained profits are increased? Choose one: a. Declaring a cash dividend b. Declaring a 10% common stock dividend c. Paying a previously declared cash dividend d. Purchasing treasury stock.