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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