All of the Following Statements Regarding Stock Dividends Are True

question 42

Multiple Choice

All of the following statements regarding stock dividends are true except:

• A) Stock dividends transfer a portion of equity from retained earnings to contributed capital.
• B) Directors can use stock dividends to keep the market price of the stock affordable.
• C) Stock dividends provide evidence of management's confidence that the company is doing well.
• D) Stock dividends do not reduce assets or equity.
• E) Stock dividends decrease the number of shares outstanding.

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Definitions:

Hypothalamus

A region of the brain that plays a crucial role in many important functions, including releasing hormones, regulating body temperature, and managing feelings of hunger and thirst.

Sensory Input

Information received by the body's sensory organs, which is then sent to the brain for processing.

Body Maintenance

The biological processes and behaviors that keep the body functioning properly, including repair and immune responses.