The board of directors is considering a stock split or a stock dividend. They understand that total
Question:
The board of directors is considering a stock split or a stock dividend. They understand that total stockholders’
equity will remain the same under either action.
However, they are not sure of the different effects of the two actions on other aspects of stockholders’
equity. Explain the differences to the directors.
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Related Book For 
Accounting Tools For Business Decision Making
ISBN: 9781118771112
5th Edition
Authors: Kimmel, Wetlands, Kieso
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