A Declaration and Distribution of a 20 Percent Stock Dividend

question 96

Multiple Choice

A declaration and distribution of a 20 percent stock dividend on common stock will

• A) not change the total stockholders' equity.
• B) increase the assets of the corporation.
• C) result in an increase in the book value of each share of common stock outstanding.
• D) increase the liabilities of the corporation.

---

Definitions:

Aggressive Bidding

a strategy in auctions or competitive procurement where participants bid very high or low to secure a contract or item, often taking substantial risks.

Auctioneer

A person or entity responsible for conducting auctions, overseeing the bidding process, and finalizing the sale of items.

Winner's Curse

A phenomenon in auctions where the winner tends to overpay due to incomplete information or overly optimistic value assessments.

Aggressively

In a manner that is forceful, assertive, or intense in pursuit of objectives.