Most firms like to have their stock selling at a high P/E ratio, and they also like to haveextensive public ownership (many different shareholders). Explain how stock dividends orstock splits may help achieve those goals.

Most firms like to have their stock selling at a high P/E ratio, and they also like to haveextensive public ownership (many different shareholders). Explain how stock dividends orstock splits may help achieve those goals.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter10: Forecasting Financial Statement

Section: Chapter Questions

Problem 1EIC

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Most firms like to have their stock selling at a high P/E ratio, and they also like to have
extensive public ownership (many different shareholders). Explain how stock dividends or
stock splits may help achieve those goals.

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