a)
To discuss: The effects of equity accounts and per share data of a 20% stock dividend.
Introduction:
A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.
b)
To discuss: The effects of equity accounts and per share data of a 5-4 stock split.
Introduction:
A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.
c)
To discuss: The best option which accomplish W Company’s goal of reducing the stock price when maintaining the stable level of retained earnings.
d)
To discuss: The legal constraint which might encourage the firm to take the stock split over stock dividend.
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Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
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