The effect of a stock dividend is to

A) decrease total assets and shareholders' equity.
B) change the composition of shareholders' equity.
C) decrease total assets and total liabilities.
D) increase the book value per share of common shares.

Shareholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest of shareholders.

Total Liabilities

The combined amount of debts and obligations that a company owes at a certain point in time.

Book Value

The net value of an asset calculated as the original cost minus depreciation, amortization, or impairment costs.