Corporations May Choose to Distribute Stock Dividends in Order To

question 62

Multiple Choice

Corporations may choose to distribute stock dividends in order to:

• A)increase the market price per share of its stock.
• B)reduce the market price per share of its stock.
• C)increase retained earnings.
• D)decrease the amount of stockholders' equity in the corporation.

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Definitions:

Sugar

A sweet-flavored substance derived primarily from sugarcane and sugar beet, used chiefly as an ingredient in food and beverages.

Equivalent Imports

Goods or services brought into a country that serve the same purpose as locally produced goods or services.

Quota

A government-imposed trade restriction limiting the number or monetary value of goods that can be imported or exported during a specified period.

Tariff

A tax imposed on imported goods, often to protect domestic industries or to generate revenue.