Effect Shares outstanding Retained earnings Shareholder's equity Stock Dividend Increases Decreases No impact Stock Split Increases No impact No impact Reverse Stock Split Decreases No impact No impact Share Repurchase Decreases

Q: Dividend Growth Model Under what two assumptions can we use the dividend growth model presented in…

A: Dividend growth model is an important model that is often used when it comes to determining the fair…

Q: If any of the following occurs when retained profits are increased? Choose one: a. Declaring a cash…

A: its assets, debts, equity (equity) equity, short- and long-term loans, and other related items A…

Q: Which of the following statements is not true about a 2-for-1 stock split? a. Par value per share is…

A: In case of stock split.  The number of shares outstanding will increase proportionately.

Q: reasury stock was acquired for cash ta price in excess of its par value. he treasury stock was…

A: Solution: Under cost method, on acquisition of treasury stock entire cost is debited to treasury…

Q: One reason that a company might reacquire its own shares could be to:   1. Lower its earnings per…

A: Share buyback refers to purchase of its own shares from the open market by the company.

Q: a. Lower net revenue. QUESTION 20 Which of the following statements is not true about a 2-for-1…

A: whenever the stock split takes place then the shareholder who were holding the shared in the company…

Q: Which of the following statements is not true about a 3-for-1 stock split?a. Total stockholders’…

A: Option a is not true. Total shareholder's equity remains the same. Stock split means to split the…

Q: Stockholders that do not get benefits even if company's earnings grow are classified as

A: Common stockholders: These are the most frequent type of stockholders and have the most significant…

Q: Cumulative shares : Select one: a. Is a type of common shares that allows certain shareholders to…

A: Preference shares are those shares that are given preference for dividends over the common…

Q: in recording a small stock dividend, retained earnings is debited while in recording a large stock…

A: >Dividends are the amounts given to stockholders for their investments in stock. >Dividends…

Q: Cumulative preferred stock O requires dividends in arrears to be paid before the firm can pay…

A: The preferred stock is the type of stocks where the repayment of   preference dividend and principal…

Q: A common share dividend has preference of payment over a preferred share dividend is the result of a…

A: A common share dividend is a portion of a company's profit, shared with those who own ordinary…

Q: Effect of cash dividend and stock splitIndicate whether the following actions would (+) increase.…

A: Dividends are the amount or value of profits that is being distributed to the shareholders. It can…

Q: Diluted earnings per share shows dilution resulting from additional shares that may be issued for…

A: Introduction:- Diluted Earnings Per Share indicates the residual net profits accountable to each…

Q: Neptune Corporation is following the residual dividend policy with regard to the payment of cash…

A: Dividends are distribution of surplus profits by a firm to its shareholders as a return for…

Q: The declaration and issuance of a dividend in shares (stock dividend) greater than 25% of the shares…

A: In case of a stock dividend greater than 25% (also known as large stock dividends), the journal…

Q: Identify the effect the declaration of a stock dividend has on total share capital, retained…

A: Total Share Capital:Increase: The total number of shares outstanding increases due to the issuance…

Q: A small stock dividend: O Is a distribution of less than or equal to 25% of the previously…

A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: Preferred stockholders A. are guaranteed to receive an annual dividend payment O B. are guaranteed…

A: The correct answer to the question is "C. Receive a dividend preference over common…

Q: The declaration and issuance of 15% stock dividend (when fair value of the share is greater than the…

A: Stock dividends: Stock dividends are the number of shares issued by a company to the existing…

Q: 14) The declaration and issuance of a stock dividend: A) Does not change retained earnings or…

A: Accounting includes procedures such as gathering, recording, analyzing, summarizing, allocating,…

Q: What happens to the price of a stock when the stock goes “ex-dividend”? a) it decreases…

A: Ex dividend date is the cut off date to purchase a stock. Investor who purchased stock on ex…

Q: The 2:1 split of shares (stock split-up) to. decreases par value per share and increases total…

A: Stock splitting is a process associated with reducing the face value of the stock for cut the market…

Q: Stock splits are given for all the reasons EXCEPT for in increases the number of outstanding shares…

A: The stock split is a way to provide dividend to shareholders.

Q: a. What effect on Mammoth's equity account would result from the stock split? b. What change in…

A: Par value of common stock before stock-split is $4 per shareAnd number of outstanding shares before…

Q: The 2:1 split of shares (stock split-up): a. increases par value per share without affecting total…

A: A stock split occurs when a firm increases the number of outstanding shares of stock in order to…

Q: What does it mean when preferred stock has a cumulative feature?

A: Preferred stock is a type of ownership in a company that gives owners the right to fixed dividends…

Q: What effect will the acquisition of treasury stock have on a company's earnings per share? (NIE 12)…

A: Answer:- increase Explanation:- The acquisition of treasury stock will typically have the effect of…

Q: Cumulative preferred stock gives its owners a right to be paid both the current and all prior…

A: Introduction: Cumulative preferred stock is one sort of preferred stock; a preferred stock normally…