Which of the following statements is most correct with respect to stock dividends?
Which of the following statements is most correct with respect to stock dividends?
1. The payment of a stock dividend reduces the number of common stock shares outstanding.
2. The payment of a stock dividend generates an increase in the retained earnings account.
3. The total value of the shareholders' equity account is not altered by the payment of a stock dividend.
4. Stock dividends are typically represented by an increase of 100 percent or more in previously outstanding stock.
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Answer by jeff410
3. The total value of the shareholders' equity account is not altered by the payment of a stock dividend.
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