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Does Nathan expeiemt a th ck as a resulr of the 2-tor- it? sp e What is Nathan's tax liability from the event? s Stock
Does Nathan expeiemt a th ck as a resulr of the 2-tor- it? sp e What is Nathan's tax liability from the event? s Stock split versus stock dividend: Firm Mammoth Corporation is considering a ad to n heu b-for-2 stock split. It currently has the stockholders' equity position as shown. The SIX Long-Term Financial Decisions most recent period's earnings availab is $120 per share. The current stock price common stock are included in retained earnings. $1,000,000 $300,000 $1,700,000 510,000,000 Preferred stock Common stock (100,000 shares at $3 par Paid-in capital in excess of par Retained earnings Total stockholders' equity on Mammoth would result from the stock split a. What effeces Mamm h. Whar change in stock price would you expect to resule from the stock c. What is the maximum cash dividend per share that the firm could pay mon stock before and afer the stock splice (Assume that legal capital paid-in capital.) 4 Contrast your answers to parts a through c with the circumstances 50% stock dividend. Eeplan the differences between stock splits and stock dividends dund un ick sofit: Firm The board of Wicker Home Health C
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