Stock Dividends

question 41

Multiple Choice

Stock dividends

• A) Have the same effects on financial statements as cash dividends.
• B) Are similar to stock splits in that they do not change the fundamental position of current shareholders.
• C) Must be accompanied by cash dividends.
• D) Are viewed unfavorably by investors and thus should not be used.
• E) Have no effect on a firm's balance sheet.

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Definitions:

Blood Clot

A mass formed by platelets and fibrin in the blood to prevent bleeding, which can sometimes lead to pathological blockages.

Thalidomide

A sedative used in the 1960s that has been linked to birth defects, especially deformed or absent limbs.

Insomnia

A sleep disorder characterized by difficulty falling and/or staying asleep.

Dizygotic Twins

Also known as fraternal twins, these siblings result from the fertilization of two separate eggs by two separate sperm and share about 50% of their DNA.