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Does stock dividend increase investor-s personal wealth

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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Solution Preview :

Prepared by a verified Expert

Finance Basics: Does stock dividend increase investor-s personal wealth

Reference No:- TGS0556900

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Does stock dividend increase investor-s personal wealth

Reference No:- TGS0556900

Recent Questions Asked Finance Basics

Q : Find the net impact on retained earnings

Q : What amount should be debited to office equipment account

Q : Find the impact on the balance sheet equation

Q : Calculate the expenses between personal and rental use

Q : Does stock dividend increase investor-s personal wealth

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