What Effect Does a Stock Dividend Have on the Book

question 101

Multiple Choice

What effect does a stock dividend have on the book and market values of the firm?

• A) Book value increases; market value increases
• B) Book value increases; market value decreases
• C) Book value decreases; market value increases
• D) Book and market values remain constant

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Definitions:

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Sharing life and having an intimate relationship without the formalities of marriage.

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involves the systematic investigation and study of materials, sources, etc., in order to establish facts and reach new conclusions.

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A developmental phase, typically considered to occur from late teens through twenties, focusing on forming personal and economic independence and social relationships.