The Effect of a Stock Dividend Is to

question 91

Multiple Choice

The effect of a stock dividend is to

• A)decrease total assets and shareholders' equity.
• B)change the composition of shareholders' equity.
• C)decrease total assets and total liabilities.
• D)increase the book value per share of common shares.

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Definitions:

Creative Ideas

Novel and innovative thoughts or concepts, especially ones that can be implemented to solve a problem or improve a situation.

Innovative Concepts

Original ideas or approaches that break from the norm or introduce new possibilities in products, services, or business models.

Competitive Advantage

The favorable position a business achieves through offering superior value to its customers as compared to competitors, often leading to greater sales or margins.

Cost Leadership

A strategic approach where a company aims to become the lowest-cost producer in its industry, often leading to competitive pricing.