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Author Question: Little, Inc. paid a 10 percent stock dividend. Prior to the dividend, the stock's price was 100 a ... (Read 91 times)

futuristic

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Little, Inc. paid a 10 percent stock dividend. Prior to the dividend, the stock's price was 100 a share. Immediately after the dividend, the price will
 
  A)
 
  increase to 110.00 a share.
  B)
 
  decrease to 90.91 a share.
  C)
 
  decrease to 80.67 a share.
  D)
 
  do nothing in particular because of the dividend.

Question 2

Rational buyers and sellers use their assessment of an asset's risk and return to determine its value. Relative to this concept, which of the following is true?
 
  A) To a buyer the asset's value represents the minimum price that he or she would pay to acquire it.
  B) To a seller the asset's value represents the maximum sale price.
  C) To a buyer the asset's value represents the maximum price that he or she would pay to acquire it.
  D) To a seller the asset's value represents the price at which he acquired the asset.



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bfulkerson77

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Answer to Question 1

B

Answer to Question 2

C





 

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