Which of the following statements is most correct?
Click on the arrows to vote for the correct answer
A. B. C. D. E.Explanation
Stock dividends are dividends paid in the form of additional shares of stock rather than in cash. The total number of shares is increased, so earnings, dividends, and price per share all decline. In a dividend reinvestment plan, the stockholder must pay taxes on the dividend amount, even though stock and not cash has been received.