The Effect of Recording a 100 Percent Stock Dividend Would

question 67

Multiple Choice

The effect of recording a 100 percent stock dividend would be to:

• A)leave working capital unaffected, decrease earnings per share, and decrease the debt to equity ratio.
• B)leave working capital unaffected, decrease earnings per share, and decrease book value per share.
• C)leave inventory turnover unaffected, decrease working capital, and decrease book value per share.
• D)decrease the current ratio, decrease working capital, and decrease book value per share.
• E)None of these choices are correct.

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Definitions:

Minority Business Angels

Individual investors from minority groups who provide capital for small startups or entrepreneurs, often in exchange for ownership equity.

Investor Population

The demographic and psychographic composition of individuals or entities that invest in various types of assets.

United States

A country in North America, consisting of 50 states and a federal district, known for its economic and military power.

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Wealthy individuals who provide capital for startups, usually in exchange for ownership equity or convertible debt.