Identify the effect the declaration and distribution of a stock dividend has on the par value per share.
A) Increase
B) Decrease
C) Increase or decrease
D) No effect

Question

Quizplus · Accepted Answer

The declaration and distribution of a stock dividend does not affect the par value per share. The par value is a fixed amount assigned to each share and is not changed by the distribution of a stock dividend.

Identify the Effect the Declaration and Distribution of a Stock