Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
9th Edition
ISBN: 9781259277214
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 14, Problem 10QP
Summary Introduction

To determine: The effects of equity due to the distribution of stock dividends.

Introduction:

Stock dividend:

A stock dividend is the distribution of additional shares, rather than paying it as cash. Stock dividends do not affect the balance of a shareholder’s equity.

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