The Only Definite Result from a Stock Dividend or a Stock

question 34

Multiple Choice

The only definite result from a stock dividend or a stock split is

• A) an increase in the P/E ratio.
• B) an increase in the common stock's market value.
• C) an increase in the number of shares outstanding.
• D) cannot be determined from the above.

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Definitions:

Tax Burden

The measure of the total amount of taxes paid by individuals or businesses, often expressed as a percentage of income or GDP.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.

Excise Tax

A tax charged on specific goods and services, such as tobacco, alcohol, and gasoline, usually intended to discourage their use or generate revenue.

Revenue Generated

The total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.