11, State Street Beverage Company issues S805.000 of 9%, 10-year bonds on March 31, 2017. The bonds pay interest on March 31 and September 30. Which of the following statements is true? A) If the market rate of interest is 10%, the bonds will issue at a premium. B) If the market rate of interest is 10%, the bonds will issue at a discount. C) If the market rate of interest is 10%, the bonds will issue at par. D) If the market rate of interest is 10%, the bonds will issue above par. 12. The two basic sources of stockholders' equity are A) common stock and bonds B) common stock and preferred stock C) paid-in capital and retained earnings D) no-par and stated value stock 13. Treasury stock A) decreases the number of shares issued B) increases the number of shares issued C) increases the number of shares outstanding D) decreases the number of shares outstanding 14. Which of the following is true of dividends? A) Dividends are a distribution of cash, stock, or other property to stockholders. B) Dividends increase assets and decrease total stockholders' equity of a corporation. C) Dividend payments decrease paid-in capital. D) Dividend payments increase stockholders' equity hich of the following occurs when a 2-for-1 stock split is declared? ) The balance in Common Stock remains the same. The balance in Common Stock is reduced to half the original amount. The balance in Common Stock doubles The balance in Paid-in Capital in Excess of Par-Common doubles