Corporations will declare stock dividends in order to:
A)reduce the market price of a share of stock and make it more attractive to some investors.
B)increase the market price of a share of stock to help maximize the stockholders' wealth.
C)increase a stockholders' ownership percentage in the corporation.
D)increase the corporation's Retained Earnings.

Question

Quizplus · Accepted Answer

Company executives give three possible explanations for stock dividends: (1)to lower the market price per share of stock,(2)to demonstrate commitment to stockholders while conserving cash during difficult times,and (3)to signal an expectation of significant future earnings.

Corporations Will Declare Stock Dividends in Order To