Why do corporations declare stock splits and stock dividends, Financial Management

Assignment Help:

What is the effect of stock (not cash) dividends and stock splits on the market price of common stock?  Why do corporations declare stock splits and stock dividends?

Stock dividends and Stock splits decrease the price per share of the common stock but should not increase the total market value of all common stock outstanding unless other positive things are perceived to take place.  Many companies consider that a stock split or stock dividend makes their stock more affordable and thus more attractive to a wider range of potential investors.

 


Related Discussions:- Why do corporations declare stock splits and stock dividends

Assignmebt solution, Select a company (excluding finance sector) of Bursa M...

Select a company (excluding finance sector) of Bursa Malaysia (www.bursamalaysia.com). Analyse and comment on the liquidity and profitability performance of the selected company fr

Difference between transaction and translation risk, Question: You have...

Question: You have been appointed as the head of the treasury of Platza International, an automobile firm with many subsidiaries abroad. The management of Platza International

Risk-free rate, Assume you manage a $4.42 million fund that having of four ...

Assume you manage a $4.42 million fund that having of four stocks with the following investments: Stock Investment Beta A

Prepare a trend analysis for the balance sheet, • Prepare a Trend Analysis ...

• Prepare a Trend Analysis for the Balance Sheet, Income Statement and Cash Flow Statement • This should include about 12 accounts in the Balance Sheet and about 10 Income Statemen

Eoq inventory model primary variable, What are the primary variables being ...

What are the primary variables being balanced in the EOQ inventory model?  Explain The primary variables mortal balanced in the EOQ model are ordering costs and carrying costs.

What is the trade payable days, What is the Trade payable days (turnover) ...

What is the Trade payable days (turnover) Year-end trade payables/Credit purchases (or cost of sales)x   365days This is the length of time taken to pay suppliers. The rat

Define the wave of mergers in the banking industry, What is behind the wave...

What is behind the wave of mergers in the banking industry? A: Various economic factors have caused banking institutions to merge over the past various years. These factors inclu

Weighted average cost of capital of firm, Weighted average cost of capital ...

Weighted average cost of capital of Firm: Use the following information to answer the questions. Security Beta Expected retur

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd