A 10% stock dividend will increase the number of shares outstanding but the par value per share will stay the same.

Question

Quizplus · Accepted Answer

A stock dividend increases the number of shares outstanding but does not affect the par value per share, so the statement is true. A stock dividend increases the number of shares outstanding, but does not affect the par value per share. The total par value of the outstanding shares remains the same even after the dividend is issued.

A 10% Stock Dividend Will Increase the Number of Shares