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Which of the Following Statements Is True

Question 57

Multiple Choice

Which of the following statements is true?


A) Stock splits and stock dividends both reduce the market value of a share but only stock splits reduce the book value per share of issued shares.
B) Stock splits reduce the book value of a share and stock dividends reduce the market value of a share.
C) Stock splits and stock dividends both reduce the market value of a share but only stock splits reduce the retained earnings.
D) Stock splits and stock dividends both reduce the market value of a share and the retained earnings.

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