What Effect Do Stock Dividends Have on Firm Value

question 51

Multiple Choice

What effect do stock dividends have on firm value?

• A)They increase total firm value because more shares are outstanding.
• B)They decrease total firm value because EPS is lowered.
• C)They increase total firm value because each shareholder has a larger share of the firm.
• D)They have no effect on firm value.

---

Definitions:

Pansexual

A type of sexual orientation where individuals may experience attraction—whether it be aesthetic, romantic, or sexual—toward others, with no concern for the gender identity or biological sex of those individuals.

Homosexual

An individual who is sexually attracted to members of the same sex.

Ethical Sluts

A term popularized by a book of the same name, referring to individuals who pursue multiple sexual relationships with honesty and integrity.

Swingers

Individuals or couples who engage in consensual sexual exchanges with others outside their primary relationship.