29. You have been asked to compute the cost of a machine assuming the cost (including principal and interest) is to be paid in two equal payments after the acquisition date. The interest concept that best describes this application is A) present value of an annuity B) present value of a single amount. C) present value of a discount. D) None of the above is correct. 30. Chicago Clock Corporation issued a 3-for-2 stock split (i.e., hree new shares in exchange for each two old shares turned in) of its common stock which had a par value of S100 before the split. What dollar amount of retained eanings transferred to the common stock account? A) Par value of S100 per share. B) Market value per share on the issue date. C) Half of the previous total amount in the common stock account(s) D) None should be transferred. E) None of the above is correct. 31, A company declares a 40% stock dividend when there are 4.0 million common shares outstanding with a S1 par value. Their current market price is $20 per share. Which of the following will be the effect of the stock dividend? A) Retained earnings will decrease by $32 million and contributed capital will B) Contributed capital will decrease by $1.6 million and retained earnings will C) Retained earnings will decrease by $1.6 million and contributed capital will D) Contributed capital will decrease by $32 million and retained earnings will E) None of the above. increase by $32 million. increase by $1.6 million increase by $1.6 million. increase by S32 million. 32. Which of the following statements is false? A) Dividend only tells part of the story about return to investors because we have B) C) If the market price of the stock were to drop from one year to the next when to look at market price also. Dividend yield measures the amount of return distributed to the common stockholders as a percentage of price investors are willing to pay for the stock. the company pays the same dollar amount of dividends per share, the yield would increase. D) All of the above are true