After the stock dividend is paid, the per share value of a stockholder's stock will remain the same as the value before the stock dividend and, thus, the market value of his or her total holdings in the firm will remain unchanged.

Question

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After the stock dividend is paid, the per share value of the stockholder's stock will decrease due to the increase in the number of outstanding shares. However, the overall value of the stockholder's total holdings in the firm may or may not change, depending on market conditions and factors such as the company's earnings and future growth potential.

After the Stock Dividend Is Paid, the Per Share Value