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Which of the Following Correctly Describes the Effect of Declaring

Question 50

Multiple Choice

Which of the following correctly describes the effect of declaring and distributing a common stock dividend?


A) Total stockholders' equity decreases.
B) Total stockholders' equity remains the same.
C) The number of shares outstanding increases while the par value of each share decreases.
D) The number of shares outstanding decreases while the par value of each share increases.

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