Are these correct?

True/False Indicate whether the statement is True or False a T 1. When a dividend is declared the legal liability becomes effective on the payment date. E 2. Peppers Co. declared a 15% stock dividend on its common stock. This is considered a large stock dividend. E 3. A feature of preferred stock is that stockholders have voting rights. I 4. A corporation is incorporated in only one state regardless of the number of states in which it operates. T 5. The preemptive right allows stockholders the right to retain their proportion of shares of stock. E 6. When companies release EPS information, it does not affect stock prices. I 7. The operating activities section of the statement of cash flows would include cash dividends received I 8. There are never any journal entries to record a stock split transaction. T 9. Under the indirect method of preparing a statement of cash flows, a gain on the sale of equipment would be added to the operating activities