A stock split and/or a stock dividend will result in an:

Question

Quizplus · Accepted Answer

A stock split and/or a stock dividend will both result in an increase in the number of shares outstanding without changing the total assets of the firm. Therefore, choice A is the correct answer. The market value of the firm will not change as a result of a stock split or dividend since the value of each share will decrease (due to the increase in the number of shares outstanding). The total assets of the firm will also not change since these transactions are simply redistributions of equity among shareholders.

A Stock Split And/or a Stock Dividend Will Result in An