A Feature Common to Both Stock Splits and Stock Dividends

question 77

Multiple Choice

A feature common to both stock splits and stock dividends is

• A)That there is no effect on total stockholders' equity.
• B)A reduction in the contributed capital of a corporation.
• C)A transfer to earned capital of a corporation.
• D)An increase in total liabilities of a corporation.

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Definitions:

Spreadsheet Simulation

A technique involving the use of spreadsheet software to model and analyze complex systems or processes.

Target Return

A pricing strategy where the price is set based on a desired return on investment or profit margin.

Target Return-on-investment Pricing

A pricing strategy aiming to set prices based on the expected return on investment (ROI) that is targeted by the company.

Annual Target ROI

The specific return on investment a company aims to achieve within one fiscal year.