Problem D-III — Stock Dividends and Stock Splits

Multiple Choice

Problem D-III — Stock Dividends and Stock Splits
Stock dividends and stock splits are common forms of corporate stock distribution to stockholders.

Consider each of the numbered statements. You are to decide whether it:
-The retained earnings available for dividends are increased.

A) Applies to both stock dividends and stock splits.
B) Applies to neither.
C) Applies to stock splits only.
D) Applies to stock dividends only.
E) Applies to stock splits effected in the form of a dividend only.
F) Applies to both stock splits effected in the form of a dividend and a stock dividend.

(In each instance, the issuing company has only one class of stock.)


Instructions
Print next to the number of each statement below, the single capital letter of the description which applies to the statement.