CMA Pop Quiz: How did you do on our #CMAPopQuiz? #CMA
Solution: B
Because a stock dividend increases the number of common shares outstanding, Donovan's book value per common share will decrease.
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Christine Purelis
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Original Message:
Sent: 02-16-2018 09:11 AM
From: Christine Purelis
Subject: CMA Pop Quiz- Q&A 218
CMA Pop Quiz: Are you preparing for the #CMA exam? Take our #CMAPopQuiz!
Donovan Corporation recently declared and issues a 50% stock dividend. This transaction will reduce the company's
a. current ratio.
b. book value per common share.
c. debt-to-equity ratio.
d. return on operating assets.
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Christine Purelis
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