Corporations Will Declare Stock Dividends in Order To

question 118

Multiple Choice

Corporations will declare stock dividends in order to:

• A)reduce the market price of a share of stock and make it more attractive to some investors.
• B)increase the market price of a share of stock to help maximize the stockholders' wealth.
• C)increase a stockholders' ownership percentage in the corporation.
• D)increase the corporation's Retained Earnings.

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Definitions:

Taboos

pertains to behaviors or practices that are prohibited or restricted by social or cultural norms, often due to superstition or religious beliefs.

Weakest Norms

The least influential or least enforced rules and standards of behavior within a society or group.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood by others in the context of that individual's own culture.

Folkways

Norms or customary behaviors that are socially approved but not morally significant, dictating appropriate manners and actions in daily routines and interactions.