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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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