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.

---

Definitions:

Basic Emotions

Fundamental emotions that are universally recognized and experienced by humans, such as happiness, sadness, fear, disgust, anger, and surprise.

Hand Gestures

Movements of the hands and arms used to communicate ideas or emotions non-verbally.

Physiological Arousal

The body's response to stimuli, involving increased physical activity and alertness, often accompanied by the release of adrenaline.

Nonverbal Cues

Forms of communication without words, including gestures, body language, facial expressions, and posture, that convey messages or emotions.