Question
Company A has 500,000 shares of stock outstanding and declares a 20% stock dividend. Which of the following is false? A. There is no change
Company A has 500,000 shares of stock outstanding and declares a 20% stock dividend. Which of the following is false?
| A. | There is no change in the proportion of the company that each stockholder owns
| |
| B. | The number of shares outstanding will be 600,000 after the dividend is paid | |
| C. | Par value of the shares at the time of the dividend will be used to determine the dollar value of the dividend
| |
| D. | Retained earnings is reduced by the amount of the dividend | |
| E. | None of the above |
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
