Which of the Following Statements with Regard to Large Stock

question 69

Multiple Choice

Which of the following statements with regard to large stock dividends is true?

• A)As a result of the stock dividend,retained earnings is reduced by the par value of the stock issued.
• B)Retained earnings is reduced by the market value of the stock issued in the stock dividend.
• C)If the market price of the stock before a 50% stock dividend is $30,after the stock dividend it will be $45.
• D)As the result of a 50% stock dividend,a stockholder who had previously held 20 shares will then hold 40 shares.

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