Asked Jan 22, 2020

When a company issues a stock dividend which of the following would be affected? a. Earnings per share. b. Total assets. c. Total liabilities. d. Total stockholders’ equity.


Expert Answer

Step 1

Stock dividends:

Stock dividends are the number of shares issued by a company to the existing shareholders in a proportion to the number of shares owned by each shareholder, based on a stock dividend percentage.

Step 2

Identify the correct option:

When a company issues a stock dividend, it distributes additional shares to existing shareholders.

A stock dividend distributes shares so that after the distribution, all stockholders have the same percen...

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