A Stock Dividend

question 120

Multiple Choice

A stock dividend:

• A)Increases the wealth of the recipient if the market value of the shares are unchanged by the stock dividend
• B)If 100%, has no effect on the market value of the shares
• C)If less than 20% to 25%, reduces retained earnings by the par value of shares distributed in the dividend
• D)Alters the par value of the common shares

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