Question: Answer True and False 1 . All dividends, except for liquidating dividends, reduce the total stockholders' equity of a corporat ion. 2

Answer True and False
"1. All dividends, except for liquidating dividends, reduce the total stockholders' equity of a"
corporat ion.
"2. W hen a stock dividend is less tha n 20-25 percent of the commo n stock outsta nding, a"
company is required to transfer the fa ir va lue of the stock issued from retained earnings.
3. Stock sp lits and la rge stock dividends have the same effect on a compa ny's retained
earnings and total stockholders' equity.

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