a. What effect on Mammoth's equity account would result from the stock split? b. What change in stock price would you expect to result from the stock split? c. What is the maximum cash dividend per share that the firm could pay on common stock before and after the stock split? (Assume that legal capital includes all paid-in capital.) d. Contrast your answers to parts a through c. with the circumstances surrounding a 50% stock dividend.

Which of the following transactions will increase thereturn on equity?a. Declare and issue a stock dividend.b. Split the stock 2-for-1.c. Repurchase the company’s stock.d. None of the above.

In calculating earnings per share, a company uses the treasury stock method when   a. it recognizes the assumed impact of exercising outstanding warrants.   b. it develops a methodology to handle the premium paid on exercised share options.   c. it needs to value the cash received for a convertible bond.   d. it needs to value treasury stock repurchased during the year.

Stock Valuation.  Why does the value of a share of stock depend on dividends?  Based on the dividend growth model, what are the two components of the total return on a share of stock?  A substantial percentage of the companies listed on the NYSE and the NASDAQ don’t pay dividends, but investors are nonetheless willing to buy shares in them.  If the value of a share of stock depends on dividends, how is this possible?

Flexsteel is giving out a large stock dividend. This would: A. Results in a transfer of retained earnings to the common stock account B. Reduces the par value per share by the percentage of the additional shares issued. C. Is accounted for in exactly the same manner as a stock split D. Results in a transfer of retained earnings to common stock and additional paid in capital

Which of the following is not a typical question that must be answered with regard to a private company that is owned by a large number of shareholders? Question 46 options:   How and when does the company get money from the sale of its stock?   What rate of return does the company promise to pay when it sells stock?   What is the dividend yield on preferred shares of companies that hold this stock?   Who makes decisions in a company owned by a large number of shareholders?