Nontaxable Stock Dividends Result In

Multiple Choice

Nontaxable stock dividends result in:

A) A higher cost per share for all shares than before the stock dividend.
B) A lower cost per share for all shares than before the stock dividend.
C) An increase in the total cost of the old and new stock combined.
D) A decrease in the total cost of the old and new stock combined.
E) None of these.