If a corporation wishes to "capitalize" part of their earnings, it may issue a
A) cash dividend.
B) stock dividend.
C) property dividend.
D) liquidating dividend.

Question

Quizplus · Accepted Answer

If a corporation wishes to capitalize part of their earnings, it may issue a stock dividend. This allows the corporation to distribute earnings without decreasing its cash reserves, and instead increases the number of outstanding shares of stock.

If a Corporation Wishes to "Capitalize" Part of Their Earnings