A Stock Dividend

question 16

Multiple Choice

A stock dividend:

• A) If less than 20% to 25%, reduces retained earnings by the par value of shares distributed in the dividend
• B) Increases the wealth of the recipient if the market value of the shares are unchanged by the stock dividend
• C) Alters the par value of the common shares
• D) If 100%, has no effect on the market value of the shares

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Definitions:

Coracoid Process

A small hook-like structure on the scapula (shoulder blade), serving as an attachment point for several arm and chest muscles.

Lesser Trochanter

A bony prominence on the femur near its joint with the hip bone, serving as a point of attachment for several muscles of the lower limb.

Lateral Malleolus

The bony prominence on the outer side of the ankle, forming the lower end of the fibula.

Ulnar Notch

A depression on the distal end of the radius bone that articulates with the head of the ulna, allowing wrist movement.