As a Result of a 5% Stock Dividend

question 51

Multiple Choice

As a result of a 5% stock dividend:

• A)Total stockholders' equity decreases by 5%.
• B)The par value per share decreases by 5%.
• C)The number of shares owned by each stockholder increases by 5%,but total stockholders' equity does not change.
• D)Both the number of shares outstanding and the total stockholders' equity increase by 5%.

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Definitions:

Linear

When used in comparing electric devices or quantities, signifies that one unit is equal to another.

RMS

Root Mean Square, a statistical measure of the magnitude of a varying quantity, commonly used to calculate the effective value of an alternating current.

Peak

The highest point or maximum value in a cycle, often used in the context of waves or signals.

V

Typically represents voltage in electrical contexts, indicating the electrical potential difference between two points.