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:

Personality Development

Refers to the evolution of individual characteristics and behaviors that make a person unique, over time.

Erikson

A psychologist known for his theory on psychosocial development, emphasizing the impact of social experience across the lifespan.

Interpersonal Styles

The characteristic ways in which an individual interacts with others, influenced by personality traits.

Horney

Karen Horney, a psychoanalyst known for her theories on neurosis, personality, and the importance of social and cultural factors in psychological development.