How is a stock split (versus a stock dividend) treated on the financial statements of a corporation?
Answer to relevant QuestionsWhy might a stock dividend or a stock split be of limited value to an investor?Swank Clothiers earned $640 million last year and had a 30 percent payout ratio. How much did the firm add to its retained earnings?The stock of Pills Berry Company is currently selling at $60 per share. The firm pays a dividend of $1.80 per share.a. What is the annual dividend yield?b. If the firm has a payout rate of 50 percent, what is the firm’s ...Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend. The capital accounts for the firm are as follows:Common stock ...By using long-term financing to finance part of temporary current assets, a firm may have less risk but lower returns than a firm with a normal financing plan. Explain the significance of this statement.
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