Scenario: You are a member of the financial management team for a successful publicly traded company. The company's stock price has been steadily increasing, and there is a discussion among the management team about whether to implement a stock split. The CEO has asked your team to analyze the potential benefits and drawbacks of a stock split and provide recommendations. Prompt: Based on the scenario presented, discuss one of the following points regarding the decision to implement a stock split: Explain what a stock split is and how it affects the company's shares. Discuss the mechanics of a stock split and how it impacts the price per share and the number of outstanding shares. Analyze the potential

Explain what a stock split is and how it affects the company's shares. Discuss the mechanics of a stock split and how it impacts the price per share and the number of outstanding shares.

Analyze the potential benefits of a stock split for the company and its shareholders.

Evaluate the potential drawbacks or challenges associated with a stock split.

Examine the historical precedents and experiences of other companies that have implemented stock splits.

Based on your analysis, provide a recommendation on whether the company should proceed with a stock split. Justify your recommendation.