What is the difference between a stock dividend and a stock split? As a stockholder, would you prefer to see your company declare a 100% stock dividend or a 2 -for-1 split? Assume that either action is feasible 14-5) Indicate whether the following statements are true or false. If the statement is false, explain why. If a firm repurchases its stock in the open market, the shareholders who tender the stock are subject to capital gains taxes. If you own 100 shares in a company's stock and the company's stock splits 2-for-1, then you will own 200 shares in the company following the split. Some dividend reinvestment plans increase the amount of equity capital available to the firm. The Tax Code encourages companies to pay a large percentage of their net income in the form of dividends. A company that has established a clientele of investors who prefer large dividends is unlikely to adopt a residual dividend policy. If a firm follows a residual dividend policy then, holding all else constant, its dividend payout will tend to rise whenever the firm's investment opportunities improve. (14-4)Stock Repurchase A furm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations, and how many shares will remain after the repurchase? (14-5)Stock Split JPix management is considering a stock split. JPix currently sells for $120 per share and a 3-for-2 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity