medium · Financial Accounting stockholders-equity

What happens to the 'Book Value Per Share' after a 10% stock dividend?

1. It remains unchanged because the market price also adjusts.
2. It decreases because total equity remains the same while the number of shares increases.
3. It decreases only if the stock is issued above par.
4. It increases because the capitalization of Retained Earnings adds value to the stock.

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