Problem

Does a stock dividend increase an investor’s personal wealth immediately?a. No, because th...

Does a stock dividend increase an investor’s personal wealth immediately?

a. No, because the stock price falls when a stock dividend is issued.

b. Yes, because the investor has more shares.

c. Yes, because the investor acquired additional shares without paying a brokerage fee.

d. Yes, because the investor will receive more in cash dividends by owning more shares.

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