Declare a stock dividend rather than a stock split
Course:- Accounting Basics
Reference No.:- EM13867097

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Activision Blizzard, Inc., reported the following in the notes to its financial statements.

Stock Split In July, the Board of Directors approved a two-for-one split of our outstanding common shares effected in the form of a stock dividend (the split). The split was paid September 5 to shareholders of record as of August 25. The par value of our common stock was maintained at the pre-split amount of $. 000001 per share.


1. Describe the effects that this transaction would have had on the company's financial statements. Assume that 600 million shares were outstanding at the time of the transaction, trading at a stock price of $ 33.

2. Why might the board of directors have decided to declare a stock dividend rather than a stock split?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Wertz Construction Company decided at the beginning of 2010 to change from the completed contract method to the percentage-of-completion method for financial reporting purpose
Compute net tax payable or refund due for Alice and Bruce Byrd for 2015. If they have overpaid, they want the amount to be refunded to them. If you use tax forms for your co
Excel Medical, LLC, consists of two doctors, Douglass and Finn, who share in all income and losses according to a 2:3 income-sharing ratio. Dr. Lindsey Koster has been asked t
Eddy Money signed a three-year contract to host the Tonight Show. Although he will receive $130 million dollars over three years, the terms of the contract are that he is to
Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo accounts for that investment as (1) an available-for-sale investment, and (2)
For each cost, explain whether all of the cost or only a portion of the cost would appear as an expense on the income statement for the period in which the cost was incurred
What are the differences between the direct and indirect presentation of cash flows? Why does the Financial Accounting Standards Board allow both methods? Which do you prefe
Discuss the effect that this event will have on the company's financial statements - Data Technologies provides maintenance service for computers and office equipment for comp