1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Explain why peccarelli returned to guatemala and describe the goals his team are trying to accomplish.
Leno4ka [110]

The reason why Peccarelli returned to Guatemala was to look for the bodies of a tragedy that happened in his childhood and help identify them. His team’s goals are to talk to the families of the deceased and to give the families closure.

7 0
3 years ago
The ______technique for group decision making in which discussion is structured and the final solution is decided by silent vote
alukav5142 [94]

Answer:

The correct answer is nominal group technique.

Explanation:

This nominal group technique is a type of brain storming where structured meetings are being held among the members, where they will try to take out the solutions to the problems identified by them, and thus facilitating decision making. The meetings are structured here because the goal is to make sure the meetings are not dominated by few individuals and the silent members also share their thoughts and ideas with the rest of the group.

5 0
3 years ago
Link Company uses a process cost system and the weighted average method. During the year the company completed 1,300 units of pr
Bumek [7]

Answer:

Cost per equivalent unit: $60

Explanation:

Cost per equivalent unit = (Cost of Beginning Work in Progress Inventory + Total production cost during the period) / Equivalent Units of Production (EUP)

Total Production Cost = $90,000

Equivalent Units of production (EUP) = 1,300 + 400 x 50% = 1,500 units

Cost per equivalent unit: $90,000 / 1,500 units = $60

7 0
3 years ago
Sarah is an accountant with desires to open her own business. she is looking for office space at a reasonable rate along with in
seropon [69]

Sarah is an accountant with desires to open her own business. she is looking for office space at a reasonable rate along with internet service. of the conditions that need to be put in place for the entrepreneurial ecosystem, she needs social and cultural norms.

Social norms are unwritten rules about how to behave but also how things 'just are' within society. Sarah is use to having internat at a rate she can afford but needs to make sure the best rate for running her business approriately is in place. These norms are similar to cultural norms that are what is unspoken to us based on the environment in which we live. They may change as the environment adapts depending on each situation.

3 0
3 years ago
A society whose economic system is engaged in the processing and control of information is called a(n):
ss7ja [257]
Postindustrial society
7 0
3 years ago
Other questions:
  • Miguel is a new salesperson for Imperial Realty. Dissatisfied with the lack of mentoring he has received, he decides to work for
    7·1 answer
  • Why are both non excludability and non rivalry important elements of public goods?
    13·1 answer
  • Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe model. The p
    14·1 answer
  • Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, G
    8·1 answer
  • A disadvantage of speed dating is that it ________. is one of the most expensive dating methods tends to rate potential daters l
    15·1 answer
  • In the current year, Norris, an individual, has $59,000 of ordinary income, a net short-term Capital loss (NSTCL) of $9,100 and
    15·1 answer
  • Diego, age 28, married Dolores, age 27, in 2018. Their salaries for the year amounted to $47,230 and they had interest income of
    8·1 answer
  • Select the correct answer.
    15·1 answer
  • Zacher Co.'s stock has a beta of 1.48, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's req
    11·1 answer
  • If the MPC is 0.75 and there are no crowding-out or accelerator effects, then an initial increase in aggregate demand of $100 bi
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!