At what percentage point can the issuance of additional shares still qualify as a stock dividend, as
Question:
At what percentage point can the issuance of additional shares still qualify as a stock dividend, as opposed to a stock split?
Step by Step Answer:
According to FASB ASC 50520253 Stock Dividends and Stock Splits The p...View the full answer
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Related Video
Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
Students also viewed these Accounting questions
-
What requirements must a stock option meet to qualify as an incentive stock option?
-
What is a stock split and a disproportionate stock split? How do they affect each element of a corporations stockholders equity?
-
A stock split can be achieved by means of a stock dividend. Do you agree? Explain.
-
Passenger table (passengerid, address etc.) Flight table (flight id, departure, destination, depDate) Booking table (cID, fid, date, cost) a. Find Passengers who live in Chicago b. Total number of...
-
How do consumers choose the optimal consumption bundle?
-
Discuss the relationship of queries to database forms and reports used by the accounting interface.
-
Which type of structure has decision making and power being led by a few people? A. Flat. B. Integrated. C. Matrix. D. Tall.
-
Two identical billiard balls can move freely on a horizontal table. Ball A has a velocity v0 as shown and hits ball B, which is at rest, at a point C defined by = 45?. Knowing that the coefficient...
-
what are the three basic areas of responsibility for financial mnaagers
-
Determine Vo and I for the networks of Fig. 2.156. +10 V +16 V Si Si Si Si Ge 4.7 k +12 V
-
(Computation of Book Value per Share) John stone Inc. began operations in January 2009 and reported the following results for each of its 3 years of operations. 2009 $260,000 net loss 2010 $40,000...
-
A company plans to issue shares and wants to know the SECs stance on the accounting treatment for the costs of issuing stock. Can these costs be deferred, or must they be expensed immediately?
-
Use the Ratio Test to determine whether the series is convergent or divergent. 00 #=1 n! n n
-
Calculate the percentage of O2 is on based on the followingliters. 1. 6 Liters of O2= 2. 12 Liters of O2= 3. 15 Liters of O2= 4. What safety instruction should be included when educating thepatient...
-
Earl's savings account has an APR of 7.3%, calculates interest daily, and pays interest at the end of the month. If during the month of June, his balance was $400 for the first 10 days of the month,...
-
Company XYZ.s stock prices and the market index for the past four years are given in the following table. The current risk free rate is 7.2%. Use the data answer the following questions (Of course,...
-
Let A ben x n matrix with eigenvalues A, A,..., An a) Show that the determinant of A is equal to the product of its eigenvalues, i.e., det(A) = I=1^j. [20 points] b) The trace of a matrix is defined...
-
5 7. * Suppose n 3 is a positive integer and f: (0,) (0, ) is an n-times differentiable function such that f(x) f'(x) = 1 for all x (0, ). Given that f(1) = 2, find '(1), (1) and ""(1).
-
Contrast accounting and auditing as to (a) methodology and (b) purpose
-
A regular deposit of $100 is made at the beginning of each year for 20 years. Simple interest is calculated at i% per year for the 20 years. At the end of the 20-year period, the total interest in...
-
Arrange the atoms and/or ions in the following groups in order of decreasing size. a. 0, 0, 0- b. Fe+, Ni+, Zn+ c. Ca+, K+, Cl-
-
Schmidt Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 ......... $ 40,000 Purchases...
-
McGriff requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $76,000. Purchases since January 1 were $144,000; freight-in, $6,800; purchase returns...
-
Wineview Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporations books disclosed the following. Beginning inventory ...........
-
the average time a boulder high varsity lacrosse player plays in a game is 32 minutes witha standard deviation of 9 minutes. nolans playing in last week's game agoainst fairview was 44 minutes....
-
7) (4 pts) Durbin Inc. has never paid a dividend, and it is not known when the company will pay one.Its current free cash flow is $150,000, and this FCF is expected to grow at a constant 6% rate.The...
-
What can you put into place to mitigate risks in a supply chain aspect?
Study smarter with the SolutionInn App