Distinguishing a Stock Dividend from a Stock Split Can Sometimes

question 27

Multiple Choice

Distinguishing a stock dividend from a stock split can sometimes cause difficulties.Usually firms treat small-percentage distributions, say less than a _____ increase in the number of shares, as stock dividends and larger ones as stock splits.

• A)5%
• B)10%
• C)25%
• D)50%
• E)100%