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A. A stock dividend of15% of the outstanding common shares results in a debit to retained earnings at the par value of the stock distributed.
B. At the declaration date of a30% stock dividend, the carrying value of retained earnings will be reduced by the fair market value of the stock distributed.
C. The declaration of a cash dividend will have no effect on book value per share.
D. The declaration and payment of a10% stock dividend will result in a reduction of retained earnings at the fair market value of the stock.
According to US GAAP
C. The declaration of a cash dividend will have no effect on book value per share.
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