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Which of the Following Statements Is Not Correct

Question 55

Multiple Choice

Which of the following statements is not correct?


A) Book value for each share of stock is the total equity applicable to the class of stock divided by the number of shares issued.
B) The total book value of a class of stock is increased after a stock dividend.
C) The total book value of a class of stock is decreased after a stock dividend.
D) All of these statements are correct. In theory, a stock dividend should result in a proportionate reduction in each share's market value.

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