A 100% Stock Dividend and a 2:1 Stock Split Should,at

question 39

True/False

A 100% stock dividend and a 2:1 stock split should,at least conceptually,have the same effect on the firm's stock price.

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Definitions:

Nonexcludability

A characteristic of public goods where it is impossible or highly costly to exclude individuals from consuming the good.

Marginal Costs

The hike in total expenditure resulting from the production of an incremental unit of a product or service.

Marginal Benefits

The incremental enjoyment or usefulness received from consuming or manufacturing another unit of a commodity or service.

Public Good

Products or services accessible to all people within society at no expense, made possible by the government or by private groups or individuals, not for the purpose of financial gain.