In a stock dividend,each shareholder who owns the stock before the ex-dividend date receives ________ of the firm.

Question

Quizplus · Accepted Answer

In a stock dividend, each shareholder receives additional shares of the firm, which is Option A. Option B is incorrect as it suggests that shareholders receive both additional shares and the existing stock, whereas Option C and D are incorrect as cash payments are not made in stock dividends.

In a Stock Dividend,each Shareholder Who Owns the Stock Before