Starr Company has outstanding both common stock and nonparticipating, non-

cumulative preferred stock. The liquidation value of the preferred is equal to its

par value. The book value per share of the common stock is unaffected by

a.the declaration of a stock dividend on preferred payable in preferred stock when the market price of the preferred is equal to its par value.

b.the declaration of a stock dividend on common stock payable in common stock when the market price of the common is equal to its par value.

c.the payment of a previously declared cash dividend on the common stock.

d.a 2-for-1 split of the common stock.