Which One of the Following Statements Regarding Stock Dividends and Stock

question 71

Multiple Choice

Which one of the following statements regarding stock dividends and stock splits is true?

• A) A two-for-one stock split is equivalent to a 50% stock dividend.
• B) A three-for-one stock split is equivalent to a 66% stock dividend.
• C) A three-for-two stock split is equivalent to a 100% stock dividend.
• D) A three-for-two stock split is equivalent to a 50% stock dividend.