A feature common to both stock splits and stock dividends is
A) A reduction in total capital of a corporation
B) A transfer from earned capital to paid-in capital
C) A reduction in book value per share
D) Inclusion in conventional statement of source and application of funds

Question

Quizplus · Accepted Answer

Both stock splits and stock dividends result in a reduction in the book value per share by increasing the number of shares outstanding without a proportional increase in the company's net assets.

A Feature Common to Both Stock Splits and Stock Dividends