Assessing the Financial Statement Effects of a Stock Split The following is taken from a Motley Fool article dated June 15, 2018, concerning Aflac Inc. 

 

Quacking about a split. Supplemental‑insurance giant Aflac is best known for the white duck it has as its spokesperson, but the insurance products it provides to workers in the U.S. and Japan help millions get the coverage they need in areas that few insurance companies cover. That's been a successful model, and the insurer has seen its share price rise substantially over the years. In February, Aflac announced that it would done a  2‑for‑1 split effective March 16, putting it in the form of a 100% stock dividend. CEO Daniel Amos celebrated the announcement, noting that "this is the ninth split of the company's common stock since listing on the NYSE in 1974 and the first in 17 years." Aflac pointed to improving liquidity as a key reason for the move. 

 Aflac's common stock has a par value of $0.10. What adjustments will it make to its balance sheet as a result of the stock split?

Answer rating: 100% (QA)

A stock split does not affect the total value of a company but it does increase the number of shares ... View the full answer