We Can Be Sure That,in and of Itself,a Stock Dividend

question 121

Multiple Choice

We can be sure that,in and of itself,a stock dividend will not affect which of the following financial aspects of the firm? (Assume the stock has a par value. )

• A) Market value per share.
• B) Book value per share.
• C) Common stock account.
• D) Paid-in capital account.
• E) Total assets.

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Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a product or service.

Output

The total amount of goods and services produced by an economic system, company, or sector within a certain period.

Marginal Cost

The cost incurred by producing one additional unit of a good or service, which varies depending on the level of production.