The only definite result from a stock dividend or a stock split is
A) an increase in the P/E ratio.
B) an increase in the common stock's market value.
C) an increase in the number of shares outstanding.
D) cannot be determined from the above.

Question

Quizplus · Accepted Answer

The only definite result from a stock dividend or a stock split is an increase in the number of shares outstanding. The P/E ratio and market value may or may not be affected depending on other market factors. Therefore, option C is the correct answer.

The Only Definite Result from a Stock Dividend or a Stock