Concentric Corporation has 10 million shares of stock outstanding. Concentric's after-tax profits
are $140 million and the corporation's stock is selling at a price-earnings multiple of 18, for a stock
price of $252 per share.
Concentric's management issues a 40% stock dividend. What is the effect on
an investor who owns 100 shares of Concentric before the dividend if Concentric's price-earnings
multiple remains the same after the dividend is paid?
A) The investor will own 100 shares worth $35,280.
B) The investor will own 100 shares worth $25,200.
C) The investor will own 140 shares worth $25,200.
D) The investor will own 140 shares worth $35,280.
C
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Alberta's Appliances is a wholesaler that sells to retail stores on credit. To provide for possible bad debts, Alberta established a $32,000 allowance for uncollectible accounts
One of its customers goes bankrupt and Alberta decided to write off the account as uncollectible. What journal entry should Alberta make to record the bankruptcy? a. debit bad debts expense; and credit accounts receivable b. debit bad debts expense; and credit allowance for uncollectible accounts c. debit sales revenues; and allowance for uncollectible accounts d. debit allowance for uncollectible accounts; and credit accounts receivable
The amount a business expects to collect from its accounts receivable is
a. an expense; b. the allowance method; c. a cash shortage; d. a net realizable value; e. a percentage of the write-off amount.