When there is a purchase and sale of stock, or a payment of dividends, there is never any gain or loss recorded.

Select one:

True

False

Question 10

Not yet answered

Points out of 1

Flag question

Question text

As of 2014, Fischer Corp. has $10 par, 4% preferred stock, 6,000 shares outstanding, and $1 par common stock with 38,000 shares outstanding. The preferred stock is cumulative and preferred stockholders last received a dividend in 2011. If the company wants to distribute $3 per share to the common stockholders in 2014, what is the total amount of dividends that the company must pay in the current year?

Select one:

a. $50,000

b. $121,200

c. $114,000

d. $116,400

Question 11

Not yet answered

Points out of 1

Flag question

Question text

Why might a company repurchase its own stock?

Select one:

a. It believes the market undervalues its shares.

b. To offset dilutive effects of employee stock options granted

c. To improve earnings per share by reducing the denominator

d. All of the above

Question 12

Not yet answered

Points out of 1

Flag question

Question text

On its 2013 balance sheet, Walgreen Co, reports treasury stock at cost of $3,114million. The company has a total of 1,028,180,150 shares issued and 946,595,578 shares outstanding. What average price did Walgreen pay for treasury shares?

Select one:

a. $3.03

b. $3.29

c. $38.17

d. $3.15