Explain the immediate effects, if any, of each of the following transactions on a companys earnings per
Question:
Explain the immediate effects, if any, of each of the following transactions on a company’s earnings per share:
a. Split the common stock 3-for-1.
b. Realized a gain from the sale of a discontinued operation.
c. Declared and paid a cash dividend on common stock.
d. Declared and distributed a stock dividend on common stock.
e. Acquired several thousand shares of treasury stock.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...
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a After a stock split earnings per share are expressed in terms of the new shares Therefore a 3for1 ...View the full answer
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Related Book For 
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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