When a firm pays a stock dividend,the shareholder's proportion of ownership in a firm remains the same,and as long as the firm's earnings remain unchanged,so does his or her share of total earnings.

Question

Quizplus · Accepted Answer

When a firm pays a stock dividend, the shareholder's proportion of ownership in the firm remains the same as the number of shares they hold doesn't change, and as long as the firm's earnings remain unchanged, the shareholder's share of total earnings also remains the same. Therefore, the statement is true.

When a Firm Pays a Stock Dividend,the Shareholder's Proportion of Ownership