The prescribed accounting treatment for stock dividends implicitly assumes that shareholders are fooled by small stock dividends

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The prescribed accounting treatment for stock dividends implicitly assumes that shareholders are fooled by small stock dividends and benefit by the market value of their additional shares. Explain this statement. Is it logical?

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Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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Question Posted: Jul 05, 2013 07:25 AM

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The prescribed accounting treatment for stock dividends implicitly assumes that shareholders are fooled by small stock dividends

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For a stock dividend of less than 25 a small stock dividend the fair value of ...View the full answer

Intermediate Accounting

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