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Which of the following statements regarding dividends paid in stock, rather than cash, is correct? A) A stock dividend is generally not taxable for federal

Which of the following statements regarding dividends paid in stock, rather than cash, is correct? A) A stock dividend is generally not taxable for federal income tax purposes. B) The overall market value of the company, theoretically, is reduced relative to the stock dividend. C) Receipt of a stock dividend causes an upward adjustment of the stockholders per share basis. D) The market price of the stock typically increases on a relative basis to the stock dividend.

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