All Else Equal,a Stock Dividend Will ________ the Number of Shares

question 8

Multiple Choice

All else equal,a stock dividend will ________ the number of shares outstanding and ________ the value per share.

• A)increase; increase
• B)increase; decrease
• C)not change; increase
• D)decrease; increase
• E)decrease; decrease

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Definitions:

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period of time, typically within a year.

Fixed Assets

Long-term tangible assets that a company uses in its operations and is not expected to consume or sell within a year.

Dividends

Payments made by a corporation to its shareholder members, distributing earnings.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.