The issuance of a stock dividend would improve a company's debt-to-equity ratio.

Name: The issuance of a stock dividend would improve a company's debt-to-equity ratio.
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Quizplus · Accepted Answer

Issuing a stock dividend increases the number of shares outstanding without affecting the company's debt, thus it doesn't directly improve the debt-to-equity ratio as it doesn't reduce the amount of debt or increase the equity value in terms of assets.

The Issuance of a Stock Dividend Would Improve a Company's