Marigold Corporation owned 16000 shares of Cullumber Corporation. These shares were purchased in 2017 for $ 134000. On November 15, 2021, Marigold declared a property dividend of one share of Cullumber for every ten shares of Marigold held by a stockholder. On that date, when the market price of Cullumber was $ 27 per share, there were 134000 shares of Marigold outstanding. What gain and net reduction in retained earnings would result from this property dividend

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.