COMP LIT 203 Lecture Notes - Lecture 20: Yit, Srf 1

19. At the point on the demand curve where Q = 10 and P=70, the elasticity of demand, expressed as a positive number, is: A) O B) 1 C) 1/5 D) 5 E) 1/7 F) 7 G) 5/7 H) 715 1) 35 J) 1/35 K) 10/7 L) 7/10 M) 40 N) 1/40 0) 12/7 P) 7/12 Q) 12/5 R) 5/12 S) 2/5 T) 5/2 U) 2 V) 1/2 W) 2/25 X) 25/2 Y) none of the above

20. At the point on the demand curve where Q = 16 and P = 40, the elasticity of demand, expressed as a positive number, is: A)0 B) 1 C) 1/5 D) 5 E) 1/7 F) 7 G) 5/7 H) 7/5 1) 35 J) 1/35 K) 10/7 L) 7/10 M) 40 N) 1/40 O) 12/7 P) 7/12 Q) 12/5 R) 5/12 S) 2/5 T) 5/2 U) 2 V) 1/2 W) 2/25 X) 25/2 Y) none of the above

Columbia Paper has the following stockholders’ equity account. The firm’s common stock has a current market price of $30 per share. Preferred stock $100,000 Common stock (10,000 shares at $2 par) 20,000 Paid-in capital in excess of par 280,000 Retained earnings 100,000 Total stockholders’ equity $500,000

a.) Show the effects on Columbia of a 5% stock dividend.

b.) Show the effects of (1) a 10% and (2) a 20% stock dividend.

c.) In light of your answers to parts a and b, discuss the effects of stock dividends on stockholders’ equity.