Discussion Assignment #2 - BYP14-2

a) Explain the different effects that a cash dividend, stock dividend, and stock split

would have on PotashCorp's assets, liabilities, shareholder's equity, and the number of

shares outstanding.

A cash dividend would cause a decrease in PotashCorp's assets and Total

Shareholders' equity and have no effect on their liabilities or number of shares.

A stock dividend would increase the number of shares but have no effect on assets,

liabilities or the total shareholders' equity.

Similar to a stock dividend, a stock split would only increase the number of shares and

have no effect on the assets, liabilities or the total shareholders' equity.