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please acting like a financial advisors, and provide some advice or recommendation. Case - Problem 15.10 (Textbook): Oregon Inc. $10 par common stock is selling
please acting like a financial advisors, and provide some advice or recommendation.
Case - Problem 15.10 (Textbook): Oregon Inc. $10 par common stock is selling for $110 per share. Four million shares are currently issued and outstanding. The board of directors wishes to stimulate interest in Oregon common stock before the forthcoming stock issue but does not wish to distribute capital at this time. The board also believes that too many adjustments to the stockholders' equity section, especially retained earnings, might discourage potential investors. The board has considered three options for stimulating interest in the stock: 1. A 20% stock dividend. 2. A 100% stock dividend. 3. A 2-for-1 stock split. Acting as financial advisors to the board, your group has been asked to report briefly on each option and, considering the board's wishes, make a recommendation. Write a short paper discussing the effects of each of the foregoing options Step by Step Solution
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