Stock Dividends Are ________ Costly to Issue Than Cash Dividends

question 48

Multiple Choice

Stock dividends are ________ costly to issue than cash dividends.

• A) less
• B) equally
• C) more
• D) occasionally less

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Definitions:

U.S. Inflation

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling within the United States.

Dollar Rally

A situation where the value of the U.S. dollar strengthens significantly against a basket of other currencies.

Foreign Currencies

Currencies used in countries other than one’s own, involved in international trading and foreign exchange markets.

Uncovered Interest Parity

A financial theory stating that the difference in interest rates between two countries equals the expected change in exchange rates between their currencies.