4. A 5% stock dividend reduces a firm's total equity.

	a.	True
	b.	False

5. A cash dividend reduces the firm's assets.

	a.	True
	b.	False

7. Once a firm has earnings, management has essentially two choices: distribute or retain them.

	a.	True
	b.	False

8. Federal income taxes favor the retention of earnings over the distribution of earnings.

	a.	True
	b.	False

9. A stock dividend has no impact on a firm's liabilities or the price of its stock.

	a.	True
	b.	False