Question : 98.Refer to the information above. If Amelia did not pay : 1259451

 

 

98.Refer to the information above. If Amelia did not pay a dividend for the last two years, but declared a $250,000 dividend this year, how much will the common stockholders receive?   

A. $152,800.

 

B. $250,000.

 

C. $97,200.

 

D. $217,600.

 

 

 

99.Refer to the information above. If Amelia decided to purchase 20,000 shares of its common stock to be used for future stock option plans at $11.40 per share, what journal entry would they make?     

A. Option A

 

B. Option B

 

C. Option C

 

D. Option D

 

 

 

 

100.Refer to the information above. The average issue price per share of the preferred stock was:   

A. $40.

 

B. $80.

 

C. $120.

 

D. $160.

 

 

 

101.Refer to the information above. If Clydesdale Corporation had reacquired the 8,000 shares of treasury stock early in 2015, what was the purchase price per share?   

A. $2.50 per share.

 

B. $4.00 per share.

 

C. $24 per share.

 

D. More information is needed to determine the purchase price.

 

 

 

102.In a “pump-and-dump” scheme, the owners of the company:   

A. Falsely claim the business has high growth potential.

 

B. Artificially raise the price of the stock.

 

C. Sell the stock at a high price.

 

D. Falsely claim that the business has high growth potential, artificially raise the price of the stock, and sell the stock at a high price.

 

 

 

 

103.All of the following are activities seen in “pump-and-dump” schemes except:   

A. The owners of the company purchase their shares at artificially high prices.

 

B. High-pressure sales tactics are used to get individuals to buy the stock.

 

C. Limited financial information is filed with the SEC.

 

D. The owners of the company claim that a previously private company has high growth potential.

 

 

 

 

104.The market price of a preferred stock will be affected by:   

A. The dividend rate.

 

B. The chance that the company will not operate profitably.

 

C. The level of interest rates.

 

D. The dividend rate, the chance that the company will not operate profitably, and the level of interest rates.

 

 

 

 

105.If preferred stock is convertible, it is so at the option of the:   

A. Board of directors.

 

B. CEO.

 

C. CFO.

 

D. Stockholders.

 

 

 

 

106.On January 1, 2015, Aili Corporation issued 60,000 shares of its total 200,000 authorized shares of $4 par value common stock for $18 per share. On December 31, 2015, Aili Corporation’s common stock is trading at $32 per share. Assume Aili Corporation decides to issue an additional 10,000 shares of its common stock on December 31, 2015. How will the above increase in value affect Aili?   

A. Aili can issue the 10,000 shares at a higher price than the initial 60,000 shares.

 

B. Aili can sell the 10,000 shares for $32 each, as well as collect an additional $14 per share for each of the 60,000 shares sold initially.

 

C. Aili reports a gain of $14 per share on all stock sold during the year.

 

D. Paid-in capital at the end of 2015 will be $2,240,000 (i.e., 70,000 shares times $32 per share).

 

 

 

 

107.The par value of the common stock of a large listed corporation:   

A. Tends to establish a ceiling for the market price of the stock.

 

B. Tends to establish a floor for the market price of the stock.

 

C. Represents legal capital and is not related to the market price of the stock.

 

D. Is increased by net income and decreased by dividends.