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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