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

question 109

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 by the dividend.
• D)only bondholders benefit from stock dividends.

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Definitions:

Resistance Change

The opposition or pushback by individuals or groups within an organization against changes in processes, systems, or culture.

Process Forces

The dynamic elements within group interactions that contribute to the method of how tasks are approached, such as communication and decision-making protocols.

Driving Forces

Elements or factors that contribute to the motivation behind actions or changes within a person or system.

State Affairs

Involves the management and governance of public sector entities and the various aspects of a country's internal and external matters.