Question

Which of the following statements are true regarding dividends?


Which of the following statements are true regarding dividends? 

  •  The payment date reflects the date a cash dividend is paid to stockholders.

  •  A stock dividend increases the number of outstanding shares.

  •  A small stock dividend is a distribution of 50% or less of previously outstanding shares. 

  •  A large stock dividend is a distribution of more than 25% of previously outstanding shares.


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Answer #1
Following statements are correct : .
The payment date reflects the date a cash dividend is paid to stockholders.
A stock dividend increases the number of outstanding shares
A large stock dividend is a distribution of more than 25% of previously outstanding shares.
Correct answer for incorrect statement :
A small stock dividend is a distribution of 25% or less of previously outstanding shares .
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