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Viewing Question 13 Current Attempt in Progress Identify all of the following statements that are correct with regards to dividends and stock splits: Select answer

Viewing Question 13

Current Attempt in Progress

Identify all of the following statements that are correct with regards to dividends and stock splits: Select answer from the options below

a. The record date is the date that will determine who is eligible to receive a dividend.

b. When a stock split occurs, a shares market value will decline and, initially, each shareholders wealth will decline.

c. Companies are not required to declare and issue dividends to common shareholders, but companies are required to declare and issue a dividend to preferred shareholders.

d. If a person holds 25% of the common shares in a company, they will receive 25% of the total dividends paid on common shares.

e. Both cash dividends and stock dividends decrease shareholders equity.

f. The advantage of a stock split is that it may increase the marketability of the shares by lowering the share price.

g. The Canada Business Corporations Act requires that stock dividends be recorded at book value.

h. When a stock dividend is declared, additional shares will be issued to each shareholder based on the proportion of the outstanding shares that each of the shareholders owns on the date of declaration.

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