Nontaxable Stock Dividends Result In

question 198

Multiple Choice

Nontaxable stock dividends result in:

• A) A higher cost per share for all shares than before the stock dividend.
• B) A lower cost per share for all shares than before the stock dividend.
• C) An increase in the total cost of the old and new stock combined.
• D) A decrease in the total cost of the old and new stock combined.
• E) None of the above.

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