A Stock Dividend Differs from a Stock Split, in That

question 28

Multiple Choice

A stock dividend differs from a stock split, in that:

• A)The amount of a stock dividend is fully taxable, whereas there is no tax implication with a stock split.
• B)Stock dividends increase the number shares greater than 25%, whereas stock splits increase shares by less than 25%
• C)Stock splits always increase the average share price whereas for stock dividends the price would remain the same
• D)Stock splits have an impact on retained earnings, whereas stock dividends have no impact

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Definitions:

Title

The legal right to own, use, or dispose of property, or a formal designation for a book, composition, or other artistic work.

Title

A legal term referring to a person's legal rights to own, use, and dispose of property or assets; also, the document or deed proving such rights.

Agreement

A mutual understanding or contract between parties outlining the terms and conditions of a relationship or deal.

Repudiation

The refusal to perform an agreement or promise. A refusal to perform a contract.