Question
Question 9 (3 points) Corporations issue stock dividends A to satisfy stockholders dividend expectations without spending cash B to increase the marketability of its stock
Question 9 (3 points)
Corporations issue stock dividends
A to satisfy stockholders dividend expectations without spending cash | |
B | to increase the marketability of its stock by increasing the number of shares outstanding and thereby decreasing the market price per share |
C | to emphasize that a portion of stockholders equity has been permanently reinvested in the business and therefore is unavailable for cash dividends. |
D | all of these answer choices are correct. |
Question 10 (3 points)
A small stock dividend
A | is less than 20%-25% of the corporations issued stock. |
B | is recorded at market value per share. |
C | is recorded at par or stated value per share. |
D | both that it is less than 20%-25% of the corporations issued stock and is recorded at market value per share |
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