When a corporation declares a stock dividend, which of the following is true?

Name: When a corporation declares a stock dividend, which of the following is true?
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Question

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When a corporation declares a stock dividend, the equity of the company remains the same as it represents the ownership interest of the shareholders. The dividend is paid out in the form of additional shares of stock, therefore, it does not affect cash or retained earnings directly.

When a Corporation Declares a Stock Dividend, Which of the Following