Nontaxable Stock Dividends Result In

question 43

Multiple Choice

Nontaxable stock dividends result in:

• A)A higher cost per share for all shares than before the stock dividend.
• B)A lower cost per share for all shares than before the stock dividend.
• C)An increase in the total cost of the old and new stock combined.
• D)A decrease in the total cost of the old and new stock combined.

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Definitions:

Variables Of Interest

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Ecologic Fallacy

The error in reasoning that occurs when conclusions about individual-level processes are drawn from group-level data.

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The middle income value where half of the households in a geographical area earn more and half earn less, used as a standard measure of economic well-being.

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