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The Effect of Recording a 100 Percent Stock Dividend Would

Question 10

Multiple Choice

The effect of recording a 100 percent stock dividend would be to:


A) leave working capital unaffected, decrease earnings per share, and decrease the debt to equity ratio.
B) leave working capital unaffected, decrease earnings per share, and decrease book value per share.
C) leave inventory turnover unaffected, decrease working capital, and decrease book value per share.
D) decrease the current ratio, decrease working capital, and decrease book value per share.
E) None of these choices are correct.

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