The effect a declaration and distribution of a share dividend has on the par value per share is a(an)

Question

Quizplus · Accepted Answer

The declaration and distribution of a share dividend does not affect the par value per share, as par value is a fixed amount assigned to each share by the company at the time of issuance. Share dividends are typically paid in the form of additional shares, so the number of shares outstanding will increase, but the par value per share will remain the same.

The Effect a Declaration and Distribution of a Share Dividend