Capital surplus account after ten percent stock dividend

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1. Gulf oil inc. reported the following common equity account in its balance sheet. The company just declared 10 percent stock dividend when the market value of its stock was $20 per share. What is the capital surplus account after the 10 percent stock dividend?

2. Low-risk investors should assume an interest rate of 6% annually. Moderate-risk investors should use 8%, high-risk investors should assume 10%, and ultra high-risk investors should use 12%. For purposes of this calculation, ignore any Social Security benefit received.

Assume you are 22 years old and want to have a $1,600,000 at retirement (age 70). How much do you need to save each quarter to reach your goal if you are a low-risk investor?

A - 1,559

B - 2,009

C - 1,460

D - 2,079

Reference no: EM132048059

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