A Stock Dividend Is Issued for the Following Reasons Except

question 38

Multiple Choice

A stock dividend is issued for the following reasons except:

• A) to continue dividends but conserve cash
• B) to reduce the per-share market price of the shares
• C) to reduce total shareholders' equity
• D) to increase the shares account and decrease Retained Earnings

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Definitions:

Total Asset Turnover

A metric that evaluates how efficiently a company can produce sales from its assets, achieved by contrasting net sales against the average total assets.

Inventory Turnover

A metric indicating the frequency at which a company's inventory is sold and replenished within a specific timeframe.

Dividend Yield

A metric showing the yearly dividend payouts of a company as a proportion of its stock price.

Gross Margin Ratio

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; used to assess a company's financial health.