Calculate the market rate of interest


1.R&R heating inc has 350,000 shares of 3-par common stock outstanding. they have declared a 5% stock dividend.the current market price of the common stock is 7.5/share. The amount that will be debited to retained earning on the date of declaration is:

a.78,750

b.183,750

c.131,250

d.52,500

2.A 25,000 bond issue with a stated interest rate of 5%, when the market rate of interest is 4$, means that the bond will sell for:

a. more than 25,000

b.25,000

c.less than 25,000

d.3,500

3.R&R heating inc has 350,000 shares of 3-par common stock outstanding. they have declared a 5% stock dividend.the current market price of the common stock is 7.5/share. the amount that will be credit to common stock on the date of declaration is :

a. 131250

b.183750

c.78750

d.52500

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Accounting Basics: Calculate the market rate of interest
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