If a company’s total stockholders’ equity is unchanged by the distribution of a stock dividend, how is it possible for a stockholder who received shares in the distribution of the dividend to benefit?
Answer to relevant QuestionsIn discussing stock dividends and stock splits in an investments class you are taking, one of the students says, “Stock splits and stock dividends are exactly the same—both are distributions of a company’s stock to ...Salt & Pepper, Inc., had retained earnings at the beginning of the current year of $460,000. During the year the company earned net income of $250,000 and declared dividends as follows:• • $1 per share for the ...During the current year, Sports +, Inc., operated two business segments: a chain of surf and dive shops and a small chain of tennis shops. The tennis shops were not profitable and were sold near year-end to another ...You have now learned about the following financial statements issued by corporations: balance sheet, income statement, statement of retained earnings, statement of stockholders’ equity, and statement of cash flows. Listed ...A summary of the transactions affecting the stockholders’ equity of Strait Corporation during the current year follows:Prior period adjustment (net of income tax benefit) . . . . . . . . . . . . . . . . . . . . . . . . $ ...
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