As a stockholder, would you prefer to see your company declare 100% stock dividend or a 2-for-1 stock split. Assume that either position is feasible. Using a hypothetical example, show the effects of stock splits and stock dividends on balance sheets.

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter14: Investing In Stocks And Bonds
Section14.2: How To Evaluate Common Stocks
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  1. As a stockholder, would you prefer to see your company declare 100% stock dividend or a 2-for-1 stock split. Assume that either position is feasible. Using a hypothetical example, show the effects of stock splits and stock dividends on balance sheets.
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