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| XYZ Corp. has 1,000 shares outstanding and retained earnings of $25, Theoretically, what would you expect to happen to the price of XYZ stock, currently selling for $50 per share, if a 20% stock dividend is declared? A. Price should increase to $60 per share. B. Price should decrease to $40 per share. C. Price should decrease to $41.67 per share. D. Nothing; price should remain at $50. |