What Effect Does a Stock Dividend Have on the Book

question 101

Multiple Choice

What effect does a stock dividend have on the book and market values of the firm?

• A)book value increases; market value increases
• B)book value increases; market value decreases
• C)book value decreases; market value increases
• D)book and market values remain constant

---

Definitions:

Technological Determinist

Someone who believes that technological development shapes society's values, structure, and changes in a determinative way.

Symbolic Interactionist

A perspective in sociology that focuses on the meanings individuals ascribe to objects, events, and behaviors, and how society is constructed through interactions.

Conflict Theories

Social theories that highlight the inherent divisions, inequalities, and power struggles within societies, often leading to social change.

Social Interaction

The process by which individuals act and react in relation to others in a social setting.