If a Company Declares a Stock Dividend, What Is the Effect

question 17

Multiple Choice

If a company declares a stock dividend, what is the effect on the shareholders' equity section and the ownership position of an individual shareholder?
$\begin{array}{ll}&\text { Shareholder's } & \text { Individual } \\&\text { Equity Section } & \text { Ownership Position }\\\hline A.&\text { Unchanged } & \text { Unchanged } \\B.&\text { Unchanged } & \text { Increased } \\C.&\text { Decreased } & \text { Unchanged } \\D.&\text { Decreased } & \text { Increased }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Operational Definition

A clearly defined set of procedures or criteria for identifying and measuring variables or concepts in research.

Empirically Tested

Pertains to a method or statement that has been verified or investigated through observation and experiment.

Independent Variable

In an experiment, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Manipulates

The action of skillfully handling, controlling, or using something or someone for one's own advantage.