A company declares a 40% stock dividend when there are 4.0 million common shares outstanding with a Tk.1 per value. Their current market price is Tk. 20 per share. Which of the following will be the effect of the stock dividend ?

A Retained earnings will decrease by Tk. 1.6 million and contributed capital will increase by Tk 1.6 million.
B Contributed capital will decrease by Tk 1.6 million and retained earnings will increased by Tk. 1.6 million
C Retained earnings will decrease by Tk. 32 million and contributed capital will increase by Tk. 32 million
D Contributed capital will decrease by Tk. 32 million and retained earnings will increase by Tk. 32 million

Correct Answer: Retained earnings will decrease by Tk. 1.6 million and contributed capital will increase by Tk 1.6 million.

Bissoy MCQ
#অর্থনীতি #Janata Bank Ltd #Janata Bank Ltd - Executive Officer - 26.06.2015

Related Questions

Karnaphuli Company paid out Tk. 2.30 in dividends per share during 2010. The market price of the stock on December 31,2010 was Tk. 21.00 per share. There were 15,000 shares of stock outstanding for the entire year. The dividend yield as of December 31, 2010 was :
A 16.43%
B 10.95%
C 9.13%
D 913.04%
Assume the following shares outstanding : Preferred stock, 6% , Tk. 50 per value, cumulative, 1000 shares with dividends in arrears 3 years, for 20-1, 20-2 and 20-3. Common stock, Tk. 100 per value, 2000 shares. Total dividends declared in 20-4 were Tk. 50,000. The total amount of dividends to which common stockholders are entitled is :
A Tk. 62000
B Tk. 50000
C Tk. 45000
D Tk. 38000
A company reports sales revenue of Tk. 200 million the current year and Tk. 180 million last year. Their total assets in the current year are Tk. 150 million and last year's total assets were Tk. 130 million . What is the current year's asset turnover ratio ?
A 1.48
B 1.33
C 1.36
D 1.43
Ali bought 500 shares of company X at Tk. 600 and 2 months later bought another 250 shares of the same company at Tk. 560. At which price should he purchase additional 250 shares in order to have an average price of Tk. 580 per share?
A 600
B 580
C 560
D 570
If Tk. 45,000 was invested in share market when the price per share was Tk. 90 and Tk. 30,000 was invested when the price per share was Tk.100, what was the average price per share purchased?
A Tk. 96.25
B Tk. 95.00
C Tk. 94.00
D Tk. 93.75
If Tk. 45,000 was invested in share market when the price per share was Tk. 90 and Tk. 30,000 was invested when the price per share was Tk. 100, what was the average price per share purchased?
A Tk. 96.25
B Tk. 95.00
C Tk. 94.00
D Tk. 93.75
If Tk. 45,000 was invested in the share market when the price per share was Tk. 90 and Tk. 30,000 was invested when the price per share was Tk. 100, what was the average price per share purchased?
A Tk. 96.25
B Tk. 95.00
C Tk. 94.00
D Tk. 93.75
If Tk. 30,000 was invested in the share market when the price per share was Tk. 50 and Tk. 45,000 was invested when the price per share was Tk. 25, what was the average price per share purchased?
A Tk. 960
B Tk. 950
C Tk. 940
D Tk. 31.25
If Tk. 4,500 was invested in a share when the price per share was Tk. 9 and Tk. 3,000 was invested in another share when the price per share was Tk. 10. What was the average price per share purchased?
A Tk. 9.20
B Tk. 9.375
C Tk. 9.40
D Tk. 9.625
If Tk. 6,300 was invested in a share when the price per share was Tk. 9 and additional Tk. 4200 was invested in the same share when the price per share was Tk. 10, what was the average price per share?
A Tk. 9.125
B Tk. 9.375
C Tk.9.5
D 9.625

Next steps