问题如下：
In a recent presentation, Doug Pearce made two statements about dividends:
Statement 1 "A stock dividend will increase share price, all other things being equal."
Statement 2 "One practical concern with a stock split is that it will reduce the company’s price-to-earnings ratio."
Are Pearce’s two statements about the effects of the stock dividend and stock split correct?
选项：
A.No for both statements.
B.Yes for Statement 1 and no for Statement 2.
C.No for Statement 1 and yes for Statement 2.
解释：
A is correct.
Both statements are incorrect. A stock dividend will decrease the price per share, all other things being equal. A stock split will reduce the price and earnings per share proportionately, leaving the price-to-earnings ratio the same.
Statement 2 "One practical concern with a stock split is that it will reduce the company’s price-to-earnings ratio."
Statement 2我这样理解可以吗？
P/E = Price / Earnings per share = (Value / Total Number of Share) / (Earning / Total Number of Share). Total Number of Share同时约去，然后P/E Ratio不会有变化。
