What effect does this dividend have on retained earnings

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Reference no: EM132015398

1. DuBois, Inc. announces a large stock dividend of 65% of the 4.96 million outstanding shares of common stock. The current price per share is $13.85. Par value of the stock is $0.01 per share.

What effect does this dividend have on retained earnings?

A. $49,600 decrease

B. $32,240 decrease

C. $44,652,000 decrease

D. $11,591,288 decrease

E. None of the above

2. A main drawback to term life policies is _____.

A. there is no savings element or residual benefits.

B. as the insured grows older, the cost increases.

C. coverage options are typically not as high.

both A and B

All of the above.

Reference no: EM132015398

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