Which of the Following Correctly Describes the Effect of Declaring

question 50

Multiple Choice

Which of the following correctly describes the effect of declaring and distributing a common stock dividend?

• A)Total stockholders' equity decreases.
• B)Total stockholders' equity remains the same.
• C)The number of shares outstanding increases while the par value of each share decreases.
• D)The number of shares outstanding decreases while the par value of each share increases.