If the Total Assets of a Firm Are Unaffected by a Stock

question 119

Multiple Choice

If the total assets of a firm are unaffected by a stock dividend,then:

• A) the stock should retain the same price per share.
• B) stock dividends should be preferred by corporations over cash dividends.
• C) an investor's wealth should not be changed.
• D) only bondholders benefit from stock dividends.

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Definitions:

Normal Weight

A weight range considered healthy for a person's height, typically based on Body Mass Index (BMI) measurements.

Objective Food Binge

An excessive eating episode where the amount of food consumed is objectively large, distinct from perceptions of overeating.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, is a handbook used by healthcare professionals for diagnosing mental disorders.

Prognosis

The prediction of the likely course and outcome of a disease or condition, often based on the average progress in similar cases.