A Corporation's Board of Directors Could Prefer a Stock Split

Multiple Choice

A corporation's board of directors could prefer a stock split to a stock dividend because a stock split:

A) increases the market price of the stock.
B) reduces Retained Earnings,so the company pays less taxes.
C) does not reduce Retained Earnings,so it does not reduce the ability to declare a cash dividend in the future.
D) increases total stockholders' equity and allows the corporation more flexibility.