A Company's Issuing a 100% Stock Dividend Has the Same

question 12

Multiple Choice

A company's issuing a 100% stock dividend has the same share price effect as

• A) a 1-for-2 split.
• B) repurchasing 50% of shares for the treasury.
• C) issuing a large cash dividend.
• D) a 2-for-1 split.

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Definitions:

Proxy

An authorization to represent someone else, especially in the context of voting shares of a company.

Shareholder Authority

The rights and powers that shareholders have within a company, including voting on key issues and decisions.

Cumulative Voting

A voting system that allows shareholders to allocate all of their votes to one candidate or spread them among multiple candidates during board elections.

Board of Directors

A group of individuals elected to represent shareholders and oversee the major decisions and policies of a corporation.