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

question 116

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:

Environmental Factors

Elements within the surrounding environment that can influence living organisms, encompassing physical, chemical, and biological factors.

Reaction Range

The concept indicating the limits within which a person's genetic makeup may impact their traits or abilities.

Actual IQ Score

The quantified measure of a person's intelligence, as determined by standardized testing.

Substandard Environments

Conditions or places that do not meet the established standards of living or safety, often leading to negative health and social outcomes.