Exam_4_Spring_2011 - Name Acct 103 P.Jarret Exam 4...

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Name_______________________________________________________________ Acct 103 P.Jarret Exam 4 Corporations, Bonds - Spring 2011 True/False ____ 1. If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share would be $4. ____ 2. If 50,000 shares are authorized, 37,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 39,000. ____ 3. The par value of stock is an arbitrary per share amount defined in many states as legal capital. ____ 4. When the board of director's declares a cash or stock dividend, this action decreases retained earnings. ____ 5. If 20,000 shares are authorized, 14,000 shares are issued, and 500 shares are held as treasury stock, a cash dividend of $1 per share would amount to $14,000. Multiple Choice ____ 6. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 50,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $1 per share dividend is declared? a. $50,000 b. $5,000 c. $100,000 d. $45,000 ____ 7. Day Inc. has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2006. What is the annual dividend on the preferred
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This note was uploaded on 07/05/2011 for the course ACCT 103 taught by Professor P.jarrit during the Spring '11 term at North Texas.

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Exam_4_Spring_2011 - Name Acct 103 P.Jarret Exam 4...

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