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

question 119

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:

Automobile Accident

An unexpected and undesirable event, often involving a collision, that occurs when a vehicle strikes another vehicle, object, or person.

Hippocampus

A part of the brain's limbic system crucial for memory formation, spatial navigation, and emotional regulation.

Anterograde Amnesia

A loss of the ability to create new memories after the event that caused the amnesia, leading to a partial or total inability to recall the recent past.

Cerebellum

A part of the brain located at the back of the skull, crucial for motor control, coordination, precision, and timing of movements.