On october 1, 2018, chief corporation declared and issued a 10% stock dividend. before this date, chief had 80,000 shares of $5 par common stock outstanding. the market value of chief corporation on the date of declaration was $10 per share. as a result of this dividend, chief's retained earnings will:
multiple choice
a. decrease by $80,000
b. not change
c. decrease by $40,000
d. increase by $80,000

Suppose that a candy maker owns a building and is renting part of the building's space to a doctor. further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. while the doctor cannot insist on a quiet environment, the doctor could move to a quieter building. however, rent in the next best building is $350/month more than rent in the noisy building. the candy maker can adopt a new technology that eliminates the noise for $275/month. given this situation, can the doctor find a private solution with the candy maker that will make both better off?