The board of directors must assign a per share value to a stock dividend declared that is equal to the
A)average cost.
B)zero.
C)original issue price.
D)fair value.

Question

Quizplus · Accepted Answer

The correct answer is D) fair value. When a board of directors declares a stock dividend, the per share value assigned to the dividend should reflect the current fair value of the shares, not the original issue price, average cost, or zero. This ensures that the dividend accurately reflects the market value of the shares at the time of the dividend declaration.

The Board of Directors Must Assign a Per Share Value