All of the Following Statements Regarding Stock Dividends Are True

question 49

Multiple Choice

All of the following statements regarding stock dividends are true except:

• A)Directors can use stock dividends to keep the market price of the stock affordable.
• B)Stock dividends provide evidence of management's confidence that the company is doing well.
• C)Stock dividends do not reduce assets or equity.
• D)Stock dividends decrease the number of shares outstanding.
• E)Stock dividends transfer a portion of equity from retained earnings to contributed capital.

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Definitions:

Chosen Freely

Selected or determined without coercion, allowing for the exercise of free will or personal preference.

Conditions

Terms or factors that affect or influence the outcome of a situation, often setting the prerequisites or environment in which an event occurs.

Diotima

A figure associated with Socrates in Plato's "Symposium," often depicted as a wise woman or priestess who instructs Socrates on issues of love and beauty.

Plato's Symposium

A philosophical text by Plato in which characters discuss the nature of love through a series of speeches, exploring differing views on eros, love's role, and its value.