After issuing a stock dividend, a stockholder will own a larger number of shares but:

A) the total ownership equity increases.
B) the total ownership equity decreases.
C) the total ownership equity stays the same.
D) None of the above are correct.

Question

shaniekqua Hutchinson · Accepted Answer

Final Answer : C, Explanation :  The total ownership equity remains the same after a stock dividend because the dividend simply divides the company's existing equity into a larger number of shares, without changing the total value of the equity owned by the shareholders.

After issuing a stock dividend, a stockholder will own a larger number of shares but:

A) the total ownership equity increases.
B) the total ownership equity decreases.
C) the total ownership equity stays the same.
D) None of the above are correct.

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Learning Objectives

Related questions

After issuing a stock dividend, a stockholder will own a larger number of shares but:A) the total ownership equity increases.B) the total ownership equity decreases.C) the total ownership equity stays the same.D) None of the above are correct.

Definitions

Learning Objectives

Learning Objectives

Related questions

After issuing a stock dividend, a stockholder will own a larger number of shares but:

A) the total ownership equity increases.
B) the total ownership equity decreases.
C) the total ownership equity stays the same.
D) None of the above are correct.