Centurion Alarms recently declared a 10 percent stock dividend. Prior to the stock dividend, the...
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Centurion Alarms recently declared a 10 percent stock dividend. Prior to the stock dividend, the equity section on Centurion's balance sheet was: Common stock (100,000 shares outstanding, Si par value) Additional paid-in capital Retained earnings Total common shareholders' equity $100,000 60,000 90.000 $250,000 Centurion's stock currently sells for $4 per share. After the stock dividend is paid, the amount in the Common stock account should be and the amount in the Retained earnings account should be a $140,000; $50,000 b. $100,000; $90,000 c. $110,000; $50,000 d. $100,000; $50,000 e. $90,000; S110,000 QUESTION 11 A dividend reinvestment plan (DRIP): a. pays extra cash dividends in years the firm has few acceptable investment opportunities. b. enables stockholders to automatically reinvest cash dividends they receive in the stocks of the dividend paying firm. c. pays stockholders tax-free cash dividends. d. requires payment of a constant percentage of the firm's earnings as annual cash dividends. O e offers fixed dividends to the firm's stockholders
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