Firm X Has Declared a Stock Dividend That Pays One

question 80

Multiple Choice

Firm X has declared a stock dividend that pays one share of stock for every 5 shares owned. After the stock dividend, earnings per share will

• A) remain the same.
• B) decline 20%.
• C) decline 5%.
• D) not enough information.

---

Definitions:

Integral Proteins

Proteins that are permanently embedded within the lipid bilayer of cell membranes, playing roles in various cellular functions including transport and signal transduction.

Cell Membrane

A biological membrane that separates the interior of all cells from the outside environment, controlling the movement of substances in and out of cells.

Receptor-medicated Endocytosis

A cellular process in which substances are brought into the cell through receptors that bind to specific molecules.

ATP Production

The creation of adenosine triphosphate (ATP), a molecule that stores and transfers energy within cells, through processes such as cellular respiration and photosynthesis.