All of the Following Statements Regarding Stock Dividends Are True

question 49

Multiple Choice

All of the following statements regarding stock dividends are true except:

• A)Directors can use stock dividends to keep the market price of the stock affordable.
• B)Stock dividends provide evidence of management's confidence that the company is doing well.
• C)Stock dividends do not reduce assets or equity.
• D)Stock dividends decrease the number of shares outstanding.
• E)Stock dividends transfer a portion of equity from retained earnings to contributed capital.

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Definitions:

Chemoautotrophs

Organisms that obtain their energy through the chemical oxidation of inorganic substances and use that energy to synthesize organic compounds from carbon dioxide.

Photoautotrophs

Organisms that carry out photosynthesis to acquire energy, using sunlight, carbon dioxide, and water to produce oxygen and glucose.

Inorganic Carbons

Carbon compounds that do not contain carbon-hydrogen bonds, typically excluding those found in living organisms or their remains.

Nitrogen-Fixing Bacteria

Bacteria capable of converting atmospheric nitrogen into ammonia, making nitrogen available to plants for growth.