The book value per share of common stock of Lawrence Company is $10. The company declares and issues a small stock dividend when the market price per share is $7. How would this transaction affect book value per share?

Book value per share = Total stockholders' equity/Number of common shares outstanding

Select one:

a. Cannot be determined from the information provided

b. No effect on book value per share

c. Decrease book value per share

d. Increase book value per share