Question
Which of the following statements is false ? a) The shares issued under a large stock dividend are valued at market value when recording the
Which of the following statements is false?
a) The shares issued under a large stock dividend are valued at market value when recording the dividend and the par value of the shares issued, if any, is credited to the par value account
b) A large stock dividend involves issuing a substantial number of shares and, in that sense, is similar to a stock-split while the small stock dividend involves issuing a small number of shares and, in that sense, is more like a cash dividend
c) Preferred stock usually carries a dividend and a liquidation preference and may require the company to accumulate unpaid dividends
d) The characteristics of preferred stock are such that it is similar in nature to both debt and equity capital
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