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All of the following statements regarding stock dividends are true except : Directors can use stock dividends to keep the market price of the stock
All of the following statements regarding stock dividends are true except:
Directors can use stock dividends to keep the market price of the stock affordable. | |||||||||||||||||||||||||||||||||||||||||
Stock dividends provide evidence of management's confidence that the company is doing well. | |||||||||||||||||||||||||||||||||||||||||
Stock dividends do not reduce assets or equity. | |||||||||||||||||||||||||||||||||||||||||
Stock dividends decrease the number of shares outstanding. | |||||||||||||||||||||||||||||||||||||||||
Stock dividends transfer a portion of equity from retained earnings to contributed capital. A stock dividend:
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