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uspon ng eise works) to Blackboard 1. The board of directors of Amazon is considering either a stock split or a stock dividend. They understand
uspon ng eise works) to Blackboard 1. The board of directors of Amazon is considering either a stock split or a stock dividend. They understand that total stockholders' equity will remain the same under either action. However, they are not sure of the different effects of the two types of actions on other aspects of stockholders' equity. Explain the differences to the directors in as much detail as possible. (Spt.) 2. Microsoft's growth in earnings is much higher than IBM's. Explain which company should adopt which of the following dividend policies that would benefit the shareholders and why. (5 pr.) Dividend policies: Either 100% retained earnings or paying 100% of earnings as dividends Provide your answers below referring to question 1 and 2
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