Develop brief answers to each of the following questions: 1. What is one way a company can

Question:

Develop brief answers to each of the following questions:

1. What is one way a company can improve its earnings per shares without improving its earnings or net income?

2. Why is comprehensive income a part of stockholders’ equity?

3. Upon receiving shares of stock dividend, why should the stockholder not consider the value of the stock as income?

4. What is the effect of a stock dividend or a stock split on book value per share?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...