AVP company directors want to issue stock dividends to its investors. Which one of the following shali occur if the directors implement the decision? Face value per share increases Paid up capital always increases Market price for share decreases Authonzed capital always increases

AVP company directors want to issue stock dividends to its investors. Which one of the following shali occur if the directors implement the decision? Face value per share increases Paid up capital always increases Market price for share decreases Authonzed capital always increases

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 16MCQ

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Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.

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AVP company directors want to issue stock dividends to its investors. Which one of the following shall occur if the directors
implement the decision?
Face value per share increases
Paid up capital always increases
Market price for share decreases
Authonzed capital always increases

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The issue as to whether dividend policy has an effect on share prices raises a question as to whether dividends paid out to stockholders are any more “certain” than the expected future dividends the stockholders hope to receive from retention of firm earnings. This is known as the bird-in-the-hand theory of dividend policy. Do you agree with this theory? Explain.
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