Required information [The following information applies to the questions displayed below.] Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. 2. The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors. True or False True False
Required information [The following information applies to the questions displayed below.] Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. 2. The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors. True or False True False
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
true or false?
![Required information
[The following information applies to the questions displayed below.]
Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to
over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1
stock split.
2. The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to
a more acceptable trading range, making it attractive to a larger number of potential investors.
True or False
True
False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F686efa8b-b30e-4d7a-a343-e2084ffbea38%2F13c412d1-1512-4bd1-85a7-086ffe376ef3%2Ffrl6fp_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to
over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1
stock split.
2. The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to
a more acceptable trading range, making it attractive to a larger number of potential investors.
True or False
True
False
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