What Effect Does a Stock Dividend Have on the Book

question 69

Multiple Choice

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

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

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Definitions:

Chronological Pattern

Organizing content or events in the order they occurred over time, from the earliest to the most recent.

Problem/Causes/Solution

A structured approach to identifying issues, understanding their causes, and proposing solutions to address them.

Presentation Consideration

Factors taken into account to prepare and deliver an effective and engaging presentation.

Next Speaker

The subsequent individual scheduled to speak or present in a sequence of events.