A Corporation with $10 Par Common Stock Issues a Large

Multiple Choice

A corporation with $10 par common stock issues a large stock dividend. The capitalization of retained earnings is equal to:

A) The par value of the shares to be distributed.
B) There is no capitalization of retained earnings in the case of a large stock dividend.
C) The market value of the shares outstanding.
D) The market value of the shares to be distributed.
E) The par value of the shares outstanding.