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Which of the following is most likely a correct implication of stock dividends to the shareholders?

A. Generally stock dividends are taxable.

B. Stock dividends positively affect the market value of shareholders’ wealth.

C. When stock dividends are paid shareholders’ cost per share helddecreases.

Project Finance Accounting Cash Flow Forecasting Financial Systems Feasibility Studies
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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/01
Upvote (2) Views (4) Followers (3) Answers (3) Report Question
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Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

option C=====================

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct answer is B. Stock dividends positively affect the market value of shareholders' wealth.

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

C-------------------------------------------------------

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