All of the following statements regarding stock dividends are true except : Directors can use stock dividends
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Directors can use stock dividends to keep the market price of the stock affordable. | |
Stock dividends provide evidence of management's confidence that the company is doing well. | |
Stock dividends do not reduce assets or equity. | |
Stock dividends decrease the number of shares outstanding. | |
Stock dividends transfer a portion of equity from retained earnings to contributed capital. |
Related Book For
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
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