A stock dividend:
A)Increases the wealth of the recipient if the market value of the shares are unchanged by the stock dividend
B)If 100%, has no effect on the market value of the shares
C)If less than 20% to 25%, reduces retained earnings by the par value of shares distributed in the dividend
D)Alters the par value of the common shares

Question

Quizplus · Accepted Answer

The Answer of A stock dividend:
A)Increases the wealth of the recipient if the market value of the shares are unchanged by the stock dividend
B)If 100%, has no effect on the market value of the shares
C)If less than 20% to 25%, reduces retained earnings by the par value of shares distributed in the dividend
D)Alters the par value of the common shares

A Stock Dividend