When a Dividend Is Declared and Paid in Stock

question 4

Multiple Choice

When a dividend is declared and paid in stock,

• A) total stockholders' equity does not change.
• B) total stockholders' equity decreases.
• C) the current ratio increases.
• D) the amount of working capital decreases.

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Definitions:

Grid

A framework of spaced bars that are parallel to or cross each other to form squares or rectangles.

Alignment

The arrangement of text or other elements in a line that follows a specific direction or orientation.

Graphics

Visual elements such as drawings, diagrams, symbols, or computer-generated images used to convey information or make a work more attractive.

Design Flaws

Inadequacies or mistakes in the planning and creation of an item or system that lead to failures in performance or safety.