All Else Equal,a Stock Dividend Will ________ the Number of Shares

question 8

Multiple Choice

All else equal,a stock dividend will ________ the number of shares outstanding and ________ the value per share.

• A)increase; increase
• B)increase; decrease
• C)not change; increase
• D)decrease; increase
• E)decrease; decrease

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Definitions:

Price Leadership

A situation where one company in an industry sets the price for its products, and other companies in the industry follow suit, often due to the dominance of the leading company.

Prisoner's Dilemma

A fundamental problem in game theory demonstrating that two individuals might not cooperate, even if it appears that it is in their best interest to do so.

Collusive Agreements

Secret or illegal cooperation or conspiracy, especially between firms, to deceive or defraud others, restrict competition, or fix prices.

Price Leadership Model

A market structure where one leading firm sets the price for its product and the other firms in the market follow suit, adjusting their prices accordingly.