Question: Morgan Incorporated is looking to increase its number of shares

Morgan Incorporated is looking to increase its number of shares of outstanding common stock to bring down its stock price. The board of directors is trying to decide if a 2-for-1 stock split or a 100% stock dividend is more appropriate. Morgan's stockholders' equity follows:
Required
a. Assess the pros and cons of the stock split versus the stock dividend.
b. Create a new stockholders' equity section if Morgan chooses
(1) A stock dividend
(2) A stock split.

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  • CreatedJuly 16, 2015
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