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.

Understand the relationship between demand and price for complementary and substitute goods.

Analyze how market conditions such as shifts in supply and demand affect wage rates and income inequality.

Predict the impact of changes in production costs and consumer preferences on market prices and quantities.

Understand the basic principles of supply and demand analysis through graphical representation.

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Definitions:

Outer Boundary

The external edge or limits of an object, area, or surface.

Cellular Activities

The various processes and functions carried out by cells, including energy production, growth, division, and response to external signals.

Anaphase

Time during cell division when chromatids divide (or, in the case of first meiosis, when the chromosome pairs divide).

Telophase

Time during cell division when the chromosomes are pulled by spindle fibers away from the cell equator and into the two halves of the dividing cell.