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Assume a firm has 1,000 shares outstanding and the market value of the shares is $5, and the par value of the shares is $1.

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Assume a firm has 1,000 shares outstanding and the market value of the shares is $5, and the par value of the shares is $1. The firm issues a 5% stock dividend. Assuming the declaration and issuance occur simultaneously, the effect of the stock dividend on the firm's accounting equation was to: increase total assets by $5,000; decrease total stockholders' equity by $5,000 O decrease total assets by $5,000; increase total stockholders' equity by $5,000 decrease total assets by $1,000; decrease total stockholders' equity by $1,000 Othere is no net change in the total owners' equity of the firm

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