Which of the Following Statements Regarding Stock Dividends and Stock

question 42

Multiple Choice

Which of the following statements regarding stock dividends and stock splits is true:

• A)a two-for-one stock split is equivalent to a 50% stock dividend.
• B)a three-for-one stock split is equivalent to a 66% stock dividend.
• C)a three-for-two stock split is equivalent to a 100% stock dividend.
• D)a 50% stock dividend is equivalent to a three-for-two stock split.

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Definitions:

Workers' Compensation Insurance

Insurance that provides wage replacement and medical benefits to employees injured in the course of employment.

Work-Related Accidents

Accidents that occur in the course of employment, potentially resulting in injury or occupational disease.

Defined-benefit Plan

A type of pension plan in which an employer promises a specified pension payment in retirement that is predetermined by a formula based on the employee's earnings history, tenure of service, and age.

Defined-contribution Plan

Defined-contribution Plan is a retirement savings plan where the amount contributed by the employer or employee is specified, but the future benefit amount is not guaranteed.