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notka56 [123]
2 years ago
10

Davidson Company has 10,000,000 common shares issued and 400,000 shares of treasury stock. The stock's par value is $2 per share

and its current market price is $15 per share. Which of the following is correct when a 15% stock dividend is declared and distributed??
a. Retained earnings will decrease by $4.000 million
b. Retained earnings will decrease only by $3.796 million
c. Retained earnings will decrease by $49.348 million.
d. Retained earnings will decrease by $52.000 million.
Business
1 answer:
emmainna [20.7K]2 years ago
6 0

Answer: See explanation

Explanation:

Based on the information given in the question, the increase or decrease in the retained earnings will be calculated as:

= (10,000,000 - 400,000) × 15% × $15

= 9,600,000 × 0.15 × 15

= 21,600,000

The retained earnings will decrease by $21.6 million

The options given aren't correct.

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A corporation may really advance if its objective is well-defined and expressed. Purpose encourages innovation, improves brand trust and loyalty, helps determine long-term business strategy, and ultimately helps a firm endure the test of time. It also creates a larger competitive edge and differentiation in the marketplace.

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The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been authorized. At the end of 2015,
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Issued shares referred to the total amount of authorised shares that has been issued to the public for subscription.

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aksik [14]

Answer:

The Central Bank is trying to increase money supply.

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7 0
1 year ago
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Mila [183]

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Common size analysis refers to making all entries in the income statement, a percentage of sales for that year.

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Sales                                      100%                           100%

Cost of Goods sold               75.7%                          46.5%

Gross Profit                            24.3%                          53.5%

Operating expenses             17.3%                             35%

Net Income                              7.0%                            18.5%

<em>Looking at the percentages above, one can see that the COGS increased the most from the previous year by going from 46.5% to 75.7% representing an increase of 29.2%.</em>

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