A corporation may issue a stock dividend for which of the following reasons?
A) It may be short of cash and unable to pay a cash dividend.
B) It may want to increase the marketability of its stock by raising the price per share.
C) It may have a large debit balance in Retained Earnings and the directors may want to transfer part of this balance to the common stock account.
D) It may want to increase the stockholders' ownership in the corporation.
Correct Answer:
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