Answer the following statements true (T) or false (F)
1. A stock dividend may be given to reduce the market price of the stock.
2. A corporation may declare stock dividends when there is not enough cash to pay a cash dividend.
3. A stock dividend will increase total assets.
4. If a company has 15,000 shares outstanding before a 3-for-1 stock split, then after the split they will have 5,000 shares outstanding.
5. If a company has 33,000 shares outstanding before a 5-for-3 stock split, then after the split they will have 55,000 shares outstanding.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
Explanation: shares outstanding pre-split × 5/3 = after split shares outstanding; ex: 33,000 × 5/3 = 55,000
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