Asked by
Kevin Longstreet
on Nov 13, 2024
Verified
Identify the effect the declaration and distribution of a stock dividend has on the par value per share.
A) Increase
B) Decrease
C) Increase or decrease
D) No effect
Par Value
The nominal or face value of a stock or bond as stated by the issuer.
Stock Dividend
A dividend payment made to shareholders in the form of additional shares of stock, rather than cash.
Declaration
An official statement, announcement, or the act of revealing information explicitly.
- Understand the concept of stock dividends and their effects on par value per share and total stockholders' equity.
Verified Answer
BC
Learning Objectives
- Understand the concept of stock dividends and their effects on par value per share and total stockholders' equity.