As a Result of a 5% Stock Dividend

question 48

Multiple Choice

As a result of a 5% stock dividend:

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