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Financial Statement Effects of Stock Dividends : A company declared a 10% stock dividend when the market value of its stock was $50 per share.
Financial Statement Effects of Stock Dividends: A company declared a 10% stock dividend when the market value of its stock was $50 per share. Discuss the accounting treatment and financial statement effects of stock dividends, including the impact on the balance sheet, retained earnings, and shareholders' equity. Analyze the differences between stock dividends and cash dividends in terms of distribution to shareholders and their implications for financial reporting and investor perceptions.
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