Which of the Following Is Not True Regarding the Issuance

question 189

Multiple Choice

Which of the following is not true regarding the issuance of a stock dividend?

• A)The stock dividend has little economic substance for shareholders.
• B)The stock dividend does not change each shareholder's ownership interest or proportionate voting power.
• C)The stock dividend results in decreases to book value per common share, but the total book value of each shareholder's interest remains unchanged.
• D)The total market value of an individual's shares should not change.
• E)The stock dividend does not change the number of shares each shareholder owns.

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Definitions:

Contradictory Propositions

Propositions that cannot both be true at the same time, as they make opposite claims.

Forms

In philosophy, especially in Platonic thought, the ideal or perfect essence of something, which exists beyond the physical representation.

Contradictory

Qualities, statements, or propositions that are in direct opposition to each other, such that if one is true, the other must be false.

Proposition

A statement or assertion that expresses a judgment or opinion, which can be analyzed as true or false.