Which of the Following Statements Is Not Correct

question 46

Multiple Choice

Which of the following statements is not correct?

• A)Book value for each share of stock is the total equity applicable to the class of stock divided by the number of shares issued.
• B)The total book value of a class of stock is increased after a stock dividend.
• C)The total book value of a class of stock is decreased after a stock dividend.
• D)All of these statements are correct. In theory, a stock dividend should result in a proportionate reduction in each share's market value.

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Definitions:

Personnel

The employees or staff members of a business or organization responsible for its operations.

Reevaluation

The process of reviewing and assessing something again, often to see if any changes or adjustments need to be made.

Learning Curves

The premise that people and organizations get better at their tasks as the tasks are repeated; sometimes called experience curves.

Experience Curves

Graphical representations similar to learning curves, but focusing on how costs decline as a company gains experience in production over time.