Hamilton Ltd. has both common shares and non-participating, noncumulative preferred shares outstanding. The book value per common share is NOT affected by
A) the declaration of a preferred stock dividend.
B) the declaration of a common stock dividend when the market price of the common is equal to its issue price.
C) a 2-for-1 split of the common shares.
D) the payment of a previously declared cash dividend on the common shares.

Question

Quizplus · Accepted Answer

The Answer of Hamilton Ltd. has both common shares and non-participating, noncumulative preferred shares outstanding. The book value per common share is NOT affected by
A) the declaration of a preferred stock dividend.
B) the declaration of a common stock dividend when the market price of the common is equal to its issue price.
C) a 2-for-1 split of the common shares.
D) the payment of a previously declared cash dividend on the common shares.