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.