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Big Meadows Sports has been very profitable in recent years and has seen its stock price steadily increase to over $ 1 0 0 per
Big Meadows Sports has been very profitable in recent years and has seen its stock price steadily increase to over $ per share. The CFO thinks the company should consider either a stock dividend or a for stock split.
Required:
Complete the following table comparing the effects of a stock dividend versus a for stock split on the stockholders' equity accounts, shares outstanding, par value, and share price.
State whether the statement "The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors." is true or false.
Complete this question by entering your answers in the tabs below.
Complete the following table comparing the effects of a stock dividend versus a for stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. Round "Par value per share" to decimal places.
tableBefore,tableAfter
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