Question 1 Riverstone, Inc, declares a small stock dividend of or of the outstanding shares of common stock. Currently, Riverstone, Inc. has 1.500.000 shares of Si par value common stock outstanding. The current market price of the stock is $121.28 per share. Riverstone Inc. will record a stock dividend in the amount of AS 1,300,000 B. $98,540,000 CS3.6130 0.914,553.600 Question 2 Failure to appropriately capitalize leased assets and liabilities results in a number of distortions in the ROE disaggregation analysis. Which of the following is not a distortion? O A. Net operating asset turnover is overstated due to the non-reporting of lease assets OB. Reported total expense is lower in the early years of a capital lease relative to an operating lease, but is higher in later years OC. Financial leverage is understated D. Total assets are understated O E. All of the above are distortions Question 3 Which of the following business factors does not play a role in determining a company's credit rating? A. Industry characteristics B. Capital structure C. Management D. Profitability E. All of the above are important factors