What Effect Will the Declaration and Distribution of a Stock $\begin{array}{cc}\text { Net Income } & \text { Cash Flows } \\\end{array}$

What effect will the declaration and distribution of a stock dividend have on net income and cash flows? $\begin{array}{cc}\text { Net Income } & \text { Cash Flows } \\\end{array}$

A. $\begin{array}{cc}\text { Not affected } & \text { Not affectec } \\\end{array}$

B. $\begin{array}{cc}\text { Not affected } & \text { Decrease }\end{array}$

C. $\begin{array}{cc}\text { Increase} &&& \text { Decrease }\end{array}$

D. $\begin{array}{cc}\text { Decrease} &&& \text { Decrease }\end{array}$

A) Choice A
B) Choice B
C) Choice C
D) Choice D