Which of the following statements regarding dividends paid in stock, rather than cash, is correct?

A)

The overall market value of the company, theoretically, is reduced relative to the stock dividend.

B)

The market price of the stock typically increases on a relative basis to the stock dividend.

C)

A stock dividend is generally not taxable for federal income tax purposes.

D)

Receipt of a stock dividend causes an upward adjustment of the stockholders per share basis.