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:

Shopper Marketing

The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store.

Product Samples

are small quantities of a product given away free of charge to consumers to try and encourage purchase.

Brand Communications

The means by which a brand conveys its values, attributes, and benefits to its target audience to build brand awareness and loyalty.

Displays

Physical or digital presentations designed to visually promote and provide information about products or services to potential customers.