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A Stock Dividend Is Similar to a Cash Dividend in That

Question 3

Multiple Choice

A stock dividend is similar to a cash dividend in that:


A) the stockholder's equity in the firm's net assets is reduced by each.
B) the stockholder's cash is increased by each.
C) the stockholder's equity in the firm's net assets is increased by each.
D) retained earnings and the amount of potential future dividends is reduced by each.

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