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Chapter 14, Problem 14.16P

a)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 20% stock dividend.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

b)

Summary Introduction

To discuss: The effects of equity accounts and per share data of a 5-4 stock split.

Introduction:

A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.

c)

Summary Introduction

To discuss: The best option which accomplish W Company’s goal of reducing the stock price when maintaining the stable level of retained earnings.

d)

Summary Introduction

To discuss: The legal constraint which might encourage the firm to take the stock split over stock dividend.

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Chapter 14 Solutions

Principles of Managerial Finance, Student Value Edition Plus MyLab Finance with Pearson eText - Access Card Package (15th Edition) (Pearson Series in Finance)

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