The per share amount normally assigned by the board of directors to a stock dividend is
A) the fair value at the distribution date.
B) the fair value at the declaration date.
C) the average price paid by shareholders on total shares issued.
D) zero.

Question

Quizplus · Accepted Answer

The per share amount assigned to a stock dividend is typically the fair value of the stock at the declaration date, which is when the board of directors announces the dividend. This value is used to determine the number of additional shares to be distributed to each shareholder. The other options do not accurately reflect the typical practice for calculating the per share amount of a stock dividend.

The Per Share Amount Normally Assigned by the Board of Directors