Answered: Which of the following transactions…

Which of the following transactions will increase thereturn on equity?a. Declare and issue a stock dividend.b. Split the stock 2-for-1.c. Repurchase the company’s stock.d. None of the above.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 14MC: Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a...

See similar textbooks

Related questions

Q: which of the following is a temporary account? -preferred stock -dividends -retained earnings

A: Accounting: Accounting is a system, or a process of collecting and organizing economic…

Q: When additional shares of stock are issued, the earnings per share decreases (assuming no change in…

A: EPS are determined by dividing gains to equity owners by the aggregate number of equity shares…

Q: 19. Which of the following statements relating to earnings per share is not true? __________ It is…

A: Ratio analysis is a technique that is used to gain insight into the organization's profitability,…

Q: Which of the following balance sheet accounts will be affected by a stock dividend but not by a…

A: A stock dividend is a dividend paid to the shareholders that are paid through shares rather than…

Q: Which of the following statements accurately describes the ex-dividend date? O It is the date when…

A: Dividend is the part or share of profits that is being distributed to shareholders. It can be cash…

Q: When a stock dividend is declared and issued: Multiple Choice total stockholders' equity does not…

A: PLEASE GIVE A LIKE, your response matters so , the answer is option 'a' When a stock dividend is…

Q: An increase in Select one: OA. dividends paid OB. retained earnings O C. OD. will increase common…

A: Common equity is an important indicator of a company's financial health and its ability to withstand…

Q: Which of the following is not true for Book Value of a share? * It depends on the balance sheet…

A: Book value of share: The book value is calculated on the basis of the book value of assets and…

Q: Do investors generally prefer dividends or share repurchases? Support your answer.

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks…

A: A stakeholder is defined as a "person or group that has an interest in any decision or action of an…

Q: For available-for-sale equity securities, receipt of a cash dividend would be reported as a. a…

A: For available-for-sale equity securities, receipt of a cash dividend would be reported as Dividend…

Q: What is the effect on the accounting equation when a stock dividend is declared? What is the effect…

A: Stock Dividends: It refers to the payment of the dividend to its shareholders by the corporation in…

Q: Which of the following results in increasing basic earnings per share? Select one: a. Paying more…

A: Earnings per share refer to the amount earned by a shareholder for each share held by him/her in the…

Q: Gordon and Lintner, recognizing that dividends affect stock prices, suggest that positive effects of…

A: Dividend policyA company's dividend policy determines how profits are shared with shareholders. It…

Q: Which of the following will increase the price of a stock? Group of answer choices: A. Decrease in…

A: The required rate of return refers to the minimum return a speculator will acknowledge for claiming…

Question

Which of the following transactions will increase the
return on equity?
a. Declare and issue a stock dividend.
b. Split the stock 2-for-1.
c. Repurchase the company’s stock.
d. None of the above.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If common stock is issued for an amount greater than par value, the excess goes to what account? a. Legal Capital b. Retained Earnings C. Cash d. Paid-in-Capital in Exess of Par Value A Moving to the next question prevents changes to this answer. & % #3 8.
8. How would total stockholders' equity be effected by the declaration of each of the following? Stock dividend a. No effect b. Decrease c. Decrease d. No effect Stock Split Increase Decrease No effect No effect
Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The purchase of Treasury Stock D. Issuance of Convertible preferred stock
Which one of the following statements about ordinary equity is correct? a. Shareholders have a residual claim to the firm's assets. b. Shareholders are repaid an ordinary share's value on the share's maturity date. c. Shareholders' return is always positive. d. Equity that is listed on the ASX must pay a dividend.
Which is not one of the three sources of return for an investor in a common stock? A-debt repurchase B-dividend C-earnings growth d-valuation change
What is the effect of purchasing treasury stock on a company’s earnings per share and return on equity, respectively? (Enter 1, 2, 3, or 4 that represents the correct answer.) No effect and no effect Decrease and decrease Increase and increase Increase and decrease
How does a 2: 1 stock split (stock-split-up) affect the following two items? Par Value per Share Retained Earnings Select one: to. Increase Has no effect b. Decrease Decrease c. Decrease Has no effect d. Has no effect Has no effect
A stock dividend___?
Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.
Which of the following transactions would NOT affect stockholders' equity? a) Issuing new shares of stock b) Paying dividends c) Recording depreciation d) Repurchasing shares of stock
Which of the following would cause a decrease in stockholders' equity? (A) Purchase of equipment (B) Payment of cash dividend (C) Declaring cash dividend (D) Issuing stock certificate for stock dividends Answer A B O O U D
Help