All of the Following Statements Regarding Stock Dividends Are True

question 42

Multiple Choice

All of the following statements regarding stock dividends are true except:

• A) Stock dividends transfer a portion of equity from retained earnings to contributed capital.
• B) Directors can use stock dividends to keep the market price of the stock affordable.
• C) Stock dividends provide evidence of management's confidence that the company is doing well.
• D) Stock dividends do not reduce assets or equity.
• E) Stock dividends decrease the number of shares outstanding.

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Definitions:

Roughness

The measure of the texture of a surface, quantified by the deviations in the direction of the normal vector of a real surface.

Waviness

A form of surface irregularity characterized by wave-like deviations from a true flat surface, which can affect the function or aesthetics of the part.

Flaws

Imperfections or defects in a material or structure that can affect its strength, appearance, or functionality.

Roughness Average

A measure of the average deviations of a surface from its geometric ideal form, indicating the surface texture.