1. A stock dividend of 1 share for each share owned is declared and paid out. To record this stock dividend, retained earnings will be reduced and APIC will be reduced as well. True or False?
2. With a stock split, the par value of the shares will be reduced by taking the old par value amount and allocating it among the new shares (ex - old par $4 per share...a 4 for 1 split occurs...new par value per share will be $1). True or False?
3. The number of issued and outstanding shares may be different as the result of the Corporation's having redeemed some of its stock. True or False?
4. Owned by the Corp, which bought these shares back from shareholders, treasury shares retain voting rights. True or False?
5. Yield - defined as Dividends/Price per share - always will be close to the LIBOR interest rate offered by banks. True or False?