Question
a) Whats the difference between a stock dividend and a stock split? b) How do stock dividends and splits affect stock prices? c) In what
a) Whats the difference between a stock dividend and a stock split?
b) How do stock dividends and splits affect stock prices?
c) In what situation should a firm pay a stock dividend?
d) In what situation should a firm split its stock?
e) Consider the following case: You have 100 common shares of Comm Suppliers Inc. (CSI) The EPS is $4.00, the DPS is $2.00; and the stock sells for $60 per share. If CSI does a two-for-one stock split how many shares will you have; what will be the new EPS and DPS; and what would you expect the stock price to be?
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