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When a Small (Under 10%)stock Dividend Is Declared,the Market Value

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When a small (under 10%)stock dividend is declared,the market value of the stock is transferred from Retained Earnings into other stockholder equity accounts.

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Definitions:

Long Run

In economics, a period in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, representing the cost per unit of output.

Total Revenue

The complete sum of funds a company acquires from selling goods or offering services over a specified time period.

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of interest and taxes.

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