Multiple Choice
Which of the following statements accurately explains why the board of directors of a company whose financial future contains some uncertainties might issue a 2-for-1 stock split rather than declare a 100% stock dividend?
A) A stock split would not reduce the market price per share,whereas a stock dividend would.
B) A stock split would reduce the market price per share,whereas a stock dividend would not.
C) A stock split would increase total stockholders' equity,whereas a stock dividend would not.
D) A stock split would not reduce retained earnings,whereas a stock dividend would.
Correct Answer:
Verified
Correct Answer:
Verified
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