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

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Definitions:

Stress

A psychological and physical response to perceived challenges or threats, resulting in a state of strain or tension.

Dissociative Amnesia

Dissociative amnesia is a disorder characterized by temporary memory loss that cannot be attributed to a common neurological or psychiatric cause, often triggered by trauma.

Dissociative Fugue

A rare psychiatric disorder characterized by temporary amnesia regarding one’s identity or past, often accompanied by sudden travel or wandering.

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality states or identities within an individual.