Pete, the controller for Mama Bear Company is preparing to discuss the accounting ramifications of issuing a stock dividend with the company's board of directors and has asked for your help. Pete is particularly unclear about the difference between a small stock dividend and a large stock dividend. You tell Pete that a small stock dividend is defined as one that is:

Multiple Choice

Less than $25\%.$

Less than $40\%.$

Less than or equal to $10\%.$

$$ Less than or equal to $40\%.$