A company's issuing a 100% stock dividend has the same share price effect as

Question

Quizplus · Accepted Answer

A 100% stock dividend means that for every share held, another share is given. This doubles the number of shares outstanding, which is the same as a 2-for-1 split where one share is split into two shares. Therefore, the correct answer is D. A 1-for-2 split (choice A) would halve the number of shares and decrease the share price. Repurchasing 50% of shares for the treasury (choice B) would decrease the number of shares outstanding and potentially increase the share price, but it does not have the same effect as a stock dividend or split. Issuing a large cash dividend (choice C) would not affect the number of shares outstanding or the share price in the same way as a stock dividend or split.

A Company's Issuing a 100% Stock Dividend Has the Same