Question: a) Whats the difference between a stock dividend and a stock split? b) How do stock dividends and splits affect stock prices? c) In what

a) Whats the difference between a stock dividend and a stock split?

b) How do stock dividends and splits affect stock prices?

c) In what situation should a firm pay a stock dividend?

d) In what situation should a firm split its stock?

e) Consider the following case: You have 100 common shares of Comm Suppliers Inc. (CSI) The EPS is $4.00, the DPS is $2.00; and the stock sells for $60 per share. If CSI does a two-for-one stock split how many shares will you have; what will be the new EPS and DPS; and what would you expect the stock price to be?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

FNC 345 Homework Assignment for Chapter 15 Distributions to Shareholders. 3/23/20 Please complete the following questions definitions 1. Explain the Key Terms (ST-1) in your own words Do not to quote...

Please complete the following definitions 2 a) Which is more critical to the dividend decision, earnings or cash flow? Explain. b) Suppose the Board of Directors of The Staten Island Suppliers Co....

Provide substantive research-based answers to the questions below. Your answers should be submitted as a Microsoft Word file (APA formatted). A. What is the difference between a stock dividend and a...

Can i get a feedback for this group discussion post. thank you. 1. What are the advantages of stock repurchases versus paying dividends? The biggest benefit of repurchases versus paying dividends, is...

What is the difference between a stock dividend and a stock split? As a stockholder, would you prefer to see your company declare a 100% stock dividend or a 2 -for-1 split? Assume that either action...

1. From the scenario, cite your forecasting conclusions that support TFC?s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario...

Week 7 & 8 Discussion Boards - Please see attached Week 7: "Financial Planning and Agency Conflicts" Week 8: "Distributions to Shareholders" PK##########!############[Content_Types].xml...

Stock Dividends versus Stock Splits Campbell Company wants to increase the number of shares of its common stock outstanding and is considering a stock dividend versus a stock split. The Stockholders'...

two answers are needed ; please provide a reply for the discussions below #1 From the e-Activity, contrast the differences between a stock dividend and a stock split. Imagine that you are a...

Give examples of federal laws that are essential to ensure legal, fair hiring practices?

Why are labor hours ineffective as a companywide allocation base in many industries today?

A technology startup is evaluating a short - term project investment. The project has an external reinvestment rate of 1 2 % and an external borrowing rate of 6 % . Compute the modified internal rate...

An international business, unlike a multinational enterprise, Question 1 2 options: needs to have manufacturing units in at least two foreign nations. need not invest directly in operations in other...

What is the history of this situation?

Besides you and the employee who allegedly stole lottery tickets, who else should be involved and in what capacity? Explain.

Is this the first time your organization has dealt with this situation, or are you setting out to modify an existing communication program? If the latter, is this a minor modification or a major one?