Which one of the following is a noncash payment made by a firm to its shareholders and is a payment that lessens the value of each outstanding share?
A)Reverse stock split
B)Cash distribution
C)Stock dividend
D)Regular dividend
E)Liquidating dividend

Question

Quizplus · Accepted Answer

A stock dividend is a noncash payment made by a firm to its shareholders in the form of additional shares of stock rather than cash. This payment lessens the value of each outstanding share because it dilutes the ownership percentage of the existing shareholders.

Which One of the Following Is a Noncash Payment Made