Question :
108.When shares of stock sold from one investor to another, : 1259452
108.When shares of stock are sold from one investor to another, they will trade at:
A. Par value.
B. Book value.
C. Market value.
D. Stated value.
109.A 2-for-1 stock split will:
A. Increase the total par value of the stock and increase the number of shares outstanding.
B. Decrease the total par value of the stock and increase the number of shares outstanding.
C. Not change the total par value of the stock and increase the number of shares outstanding.
D. Increase total stockholders’ equity.
110.Which statement is true about a stock split?
A. Total shareholders’ equity increases.
B. Total shareholders’ equity decreases.
C. Total shareholders’ equity remains the same.
D. A change in total stockholders’ equity depends upon whether it is a 2-for-1 split or a 3-for-1 split.
111.A 2-for-1 stock split:
A. Is accounted for in the same way as a stock dividend.
B. Increases the number of outstanding shares of common stock, but par value per share remains the same as before the split.
C. Is recorded by transferring the par value of additional shares from retained earnings to the common stock account.
D. Should logically cause the market price per share to drop by approximately 50%.
112.A 2-for-1 stock split will have what effect upon the following items?
A. Option A
B. Option B
C. Option C
D. Option D
113.On September 1, 2015, Maryland Corporation’s common stock was selling at a market price of $200 per share. On that date, Maryland announced a 3 for 2 stock split. At what price would you expect the stock to trade immediately after the split goes into effect?
A. $100 per share.
B. $200 per share.
C. $133.33 per share.
D. $225 per share.
114.On September 1, 2015, Miami Corporation’s common stock was selling at a market price of $300 per share. On that date, Miami announced a 2 for 1 stock split. At what price would you expect the stock to trade immediately after the split goes into effect?
A. $100.
B. $150.
C. $200.
D. $600.
115.On September 1, 2015, Miami Corporation’s common stock was selling at a market price of $25 per share. On that date, Miami announced a 1 for 4 stock split. At what price would you expect the stock to trade immediately after the split goes into effect?
A. $100.
B. $25.
C. $6.25.
D. $50.
116.Treasury stock:
A. Is an asset.
B. Increases total stockholders’ equity.
C. Decreases total stockholders’ equity.
D. Does not change total stockholders’ equity.
117.The purchase of treasury stock for cash will:
A. Increase stockholders’ equity.
B. Not increase nor decrease stockholders’ equity.
C. Decrease stockholders’ equity.
D. Not change total assets.
