Which of the following statements regarding stock dividends and stock splits is true?
A) A two-for-one stock split is equivalent to a 50% stock dividend.
B) A three-for-one stock split is equivalent to a 66% stock dividend.
C) A three-for-two stock split is equivalent to a 100% stock dividend.
D) A 50% stock dividend is equivalent to a three-for-two stock split.

Question

Quizplus · Accepted Answer

A 50% stock dividend means shareholders receive an additional 50% of their current holdings, which is equivalent to a three-for-two stock split where shareholders receive one additional share for every two shares they own.

Which of the Following Statements Regarding Stock Dividends and Stock