Question 3 (of 5) value 1.00 points MC Qu. 141 A corporation\'s board of directo

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Question 3 (of 5) value 1.00 points MC Qu. 141 A corporation's board of directors... A corporation's board of directors could prefer a stock split to a stock dividend because a stock split. O increases the market price of the stock O reduces Retained Earnings. so the company pays less taxes O does not reduce Retained Earnings. so it does not reduce the abolity to decilare a cash dividend in the future O increases total stockholders equity and ellows the corporation more frexibility etion's board of directors Multiple Choice

Explanation / Answer

The answer is "C"

C. does not reduce retained earnings. so it does not reduce the ability to declare a cash dividend in the furture

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