A Stock Dividend Has No Impact on a Firm's Liabilities

question 10

True/False

A stock dividend has no impact on a firm's liabilities or the price of its stock.​

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Definitions:

Book Value

The value of an asset as it appears on a balance sheet, calculated by subtracting depreciation from the asset's cost.

Treasury Stock

Shares that were once part of the outstanding shares but were bought back by the company and are held in the company's treasury.

Equipment

Tangible assets used in the operations of a business, such as machinery, computers, and tools, which have a useful life of more than one year.

Spreadsheet

A digital worksheet that organizes data in rows and columns, often used for calculations, data analysis, and information storage.