Solved

As a Result of a 5% Stock Dividend

Question 48

Multiple Choice

As a result of a 5% stock dividend:


A) Total shareholders' equity decreases by 5%.
B) The par value per share decreases by 5%.
C) The number of shares owned by each shareholder increases by 5%, but total shareholders' equity does not change.
D) Both the number of shares outstanding and the total shareholders' equity increase by 5%.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions