In what situations should managers consider the use of stock splits?

Q: Why might a stock dividend or a stock split be of limited value to an investor? Please explain your…

A: Stock dividend is dividend paying to investors in kind. It is adding value to the shares of the…

Q: In what situations should managers consider the use of stockdividends?

A: Stock dividend: It could be a dividend installment made in stocks instead of as cash to…

Q: What is the major reason for a forward stock split?

A: Stock Split: Stock Split is a scheme in which a company’s total number of shares outstanding will…

Q: why is the difference between a stock's current market price and its intrinsic value important to a…

A: Stock's current market price: The current stock price of a company is a price that an investor is…

Q: Should managers focus directly on the stock’s actual market price or its intrinsic value, or are…

A: The market price (MP) is the current price at which they can purchase or offer a resource or asset…

Q: Why might an investor-owned firm choose to issue different classes of common stock?

A: An investor owned firm issues different classes of common stock mainly due to the difference in…

Q: What is the primary motivation for a forward stock split?

A: Here is the Answer

Q: What conflicts of interest can arise between managers and stockholders?

A: Stockholders also knowns as shareholder is an individual, firm, or institution which owns at least…

Q: If stock dividends and stock splits don't give shareholders significant value/ amount, why do you…

A: Every publicly listed company has a defined amount of existing shares. A stock split is a measure…

Q: What are some actions stockholders can take to ensure that management’s interests and the interests…

A: Some actions that stockholders can take to guarantee that interests of stockholders and management…

Q: What is a stock split and how does it work?

A: Stock and the Spilt are two individual word and has its individual meanings. STOCK: Stock is a…

Q: How does the use of financial leverage affect current stockholders’control position?

A: Financial leverage refers to the extent of debt in the capital structure. A highly leveraged firm is…

Q: In what situation should a firm split its stock?

A: Firms generally split the stock when the price of the share becomes too high or exceeds the level…

Q: How do you determine if a stock is over-valued? What does that mean? If a willing buyer and a…

A: Stock is said to be over-valued when the market price is higher than the intrinsic value of the…

Q: what is the primary purpose of a stock split?

A: The main purpose of a stock split is to increase the liquidity of the stock. hence the number of…

Q: How is treasury stock purchased? What ethical issues may arise from buying back company stock?

A: Treasury stock can be defined as the portion of equity which is not available for public to trade,…

Q: What is meant by Forfeiture of shares?

A: Common stock: Common stock is the instrument used by the company for raising funds from the general…

Q: Define reverse stock split.

A:

Q: Both individuals and companies monitor the stock market. Explain how their reasons for doing so…

A: individual monitor their stock price by the following steps 1) keep updated about the latest news…

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split is an events that increase the outstanding shares and reduce the stated par value. For…

Q: Why do managers engage in treasury stock?

A: Stock:   A kind of investment that are made by the investors, in order to get more returns is…

Q: Why might a stock dividend or a stock split be of limited value to an investor?  What about a stock…

A: Stock Dividend:When the corporation paid a dividend to stockholders in the form of stock instead of…

Q: In your opinion, what is the most compelling justification for a forward stock split?

A: This question explains about the most compelling justification for a forward stock split

Q: What is a stock split?

A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…

Q: When purchasing a company's stock, what would be your primary factors in valuing that stock?

A: Common stock: Common stock is the cash raised by the company by issuing common or ordinary shares to…

Q: Comment on Stock Inspection?

A: A stock (also identified as equity) is a type of security that represents ownership of a portion of…

Q: stock markets protect a firms shares from liquidity? true or false

A: Stock markets are said to be amongst the foremost vital components of a free-market economy where…

Q: How does the use of financial leverage affect stockholders’ control position?

A: SOLUTION:- By raising capital through debt, the owners maintain control of the firm with limited…

Q: When does reverse stock split occurs?

A: Stock split means reducing the face value of single share. For example, A share of $100 will be…

Q: Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained…

A: The dividend policy is a decision in deciding the exchange between paying dividends and retaining…

Q: why should a company invest in the stock of another company?

A: When a company invests in the stock of another company, it is known as Inter-corporate investments.

Q: What is a stock split? How does a stock split affect the market value of a share of stock? What is a…

A: Company Stock: These are representations of the claim of ownership on the assets and company…

Q: In your opinion, what is the most important reason for a forward stock split?

A: This question explains about the most important reason for a forward stock split

Q: What effect does the stock split have on Nike’s assets? Its liabilities? Its shareholders’ equity?

A:

Q: The practice of Buyback of Shares is considered a cash management strategy. Discuss

A: 1.) When the organisation has excess Cash in hand and doesn't have projects to perform, it opts for…

Q: What is a reverse stock split?

A: Stock split: Stock split refers to the dividing one share into two of more shares. It is usually…

Q: Explain two reasons for the firm management to prefer stock repurch

A: Stock repurchases :-  It means purchasing its own shares by the company. It is…

Q: Why do firms change their dividends policy?

A: Dividends are paid as a reward to the shareholders in lieu of the money given to the corporates for…

Q: How are share repurchases an alternative to dividends, and why might investors prefer them

A: The share repurchase is the alternative to dividends because when a company repurchases it’s issued…

Q: What is stock split? Distinguish between a bonus issue and a stock split.

A: Stock Split Means: it refers to that a company divides its existing share into multiple shares or a…

Q: What is a stock split? As an investor, would youlike to see shares you own be split?

A: A stock split is when a firm increases the number of outstanding shares. This does not affect the…