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Alinara [238K]
3 years ago
6

17. What is the difference between a stock dividend and a stock split? As a stockholder, would you prefer to see your company de

clare a 100% stock dividend or a two for one stock split? Assume that either action is feasible and explain your reasoning.
Business
2 answers:
Sonbull [250]3 years ago
5 0

Answer:

A stock dividend is a dividend paid to shareholders in the form of additional shares in the company, rather than as cash while a stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Explanation:

A stock dividend occurs when the company uses the amount of money that would be paid as a cash to shareholders in the to give them additional shares in the company.

Stock dividends are not taxed until they are sold.

In a 2-for-1 stock split, an additional share is given for each share held by a shareholder. So, if my company had one million shares outstanding before the split, it will have two million shares outstanding after a 2-for-1 split and the resultant effect will affect the stock price stock's price.

I will prefer a two for one stock split divides to boost the liquidity of my company shares which means that the stockholders will have two shares for every share held earlier.

gulaghasi [49]3 years ago
4 0

Answer: The answers are provided below.

Explanation:

A stock dividend occurs when the firm uses the money that was meant to be paid to the shareholders as cash dividend to buy additional common shares for them. A stock split occurs when a firm gives two or more new shares to every existing share that an investor holds.

As an investor, I'll consider whether the aim of the company in making a stock split or issuing a stock dividend aligns with my aim of investing in the company. In a case where the aims doesn't align with mine, I'll go and invest in another firm.

A company declaring 100% dividend shows growth and also, as a stakeholder, tax may not be paid by me. Stock split gives room for small investors to invest and it also reduces share price.

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Explanation:

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3 years ago
A stock has a beta of 1.12 and an expected return of 10.8 percent. A risk-free asset currently earns 2.7 percent. a. What is the
love history [14]

Answer:

6.75%

Explanation:

Data provided in the question:

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Now,

Since it is equally invested in two assets

Therefore,

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Thus,

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4 years ago
We have the following data for a hypothetical open​ economy: GNP​ = ​$9,0009,000 Consumption​ (C) = ​$7,5007,500 Investment​ (I)
alexgriva [62]

Answer:

-$100 and -$1,500

Explanation:

The computation is shown below:

As we know that

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