EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 15, Problem 14QTD
Summary Introduction
To discuss: The many firms choose to issue stock dividends. And the value of stock dividend to a shareholder.
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What is the purpose of a stock dividend or stock split? How does a stock split impact a company's financial statements? How does a stock split impact a stockholders' individual investment?What is a reverse stock split?
Why might a stock dividend or a stock split be of limited value to an investor? What about a stock repurchase? Does it make sense for a corporation to repurchase its own stock?
What is a stock split. How does shareholder's equity change after a stock split?
Chapter 15 Solutions
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Ch. 15 - Prob. 1QTDCh. 15 - Prob. 2QTDCh. 15 - Prob. 3QTDCh. 15 - Prob. 4QTDCh. 15 - Prob. 5QTDCh. 15 - Prob. 6QTDCh. 15 - Prob. 7QTDCh. 15 - Prob. 8QTDCh. 15 - Prob. 9QTDCh. 15 - Prob. 10QTD
Ch. 15 - Prob. 11QTDCh. 15 - Prob. 12QTDCh. 15 - Prob. 13QTDCh. 15 - Prob. 14QTDCh. 15 - Prob. 15QTDCh. 15 - Prob. 16QTDCh. 15 - Prob. 17QTDCh. 15 - Prob. 18QTDCh. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5PCh. 15 - Prob. 6PCh. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15P
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- Why would a company repurchase its own stock?arrow_forwardWhich of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.arrow_forwardHow does a stock split affect the balance sheet of a corporation?arrow_forward
- What is the difference between a stock dividend and a stock split? As a stockholder, would you prefer to see your company declare a 100% stock dividend or a 2-for-1 split? Assume that either action is feasible.arrow_forwardWhy do companies reacquire their own shares of stock?arrow_forwardWhy might a stock dividend or a stock split be of limited value to an investor? Please explain your answerarrow_forward
- How does declaring a stock dividend affect the corporation’s assets, liabilities, and total equity? What are the effects of the eventual distribution of that stock?arrow_forwardWhat is most likely to happen to the earnings per share and market price of a certain stock when a firm issues stock dividends?arrow_forwardWhen a company issues STOCK DIVIDENDS, what happens to the market value of its stock and what happens to the company's EPS? Explain your answerarrow_forward
- Why is the ex-dividend date important to stockholders? If a stock is sold on the ex–dividend date, who receives the dividend—the buyer or the seller?arrow_forwardWhat is the difference between a stock split and a stock split effected in the form of a stock dividend? Finally, what is a reverse stock split, and why would a company have one?arrow_forwardWhich 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?arrow_forward
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