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CPA - Certified Public Accountant
Which of the following statements is correct regarding the declaration of a stock dividend by a corporation having only one class of par value stock?
A stock dividend is prohibited in such a corporation.
A stock dividend increases a stockholder's proportionate share of corporate ownership.
A stock dividend causes a decrease in the assets of the corporation.
A stock dividend is a corporation's ratable distribution of additional shares of stock to its stockholders.
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