Activision Blizzard, Inc., reported the following in the notes to its financial statements. Stock Split-In July, the

Question:

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 ("the split"). The split was paid September 5 to shareholders of record as of August 25. The of our was maintained at the pre-split amount of $.000001 per share.
Required:
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 rather than a stock split?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...