Company often encounter stock splits-reverse stock splits

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Reference no: EM131896615

Company’s often encounter stock splits and reverse stock splits.

Why do these splits occur?

Explain the short-term and long-term effects of split on a company's financial statements.

Justify your answer

Inventory turnover is an important measure of how a firm is managing its current assets, but differs among firms. For example, the inventory turnover for a grocery store will be much higher than a furniture store.

Why might this be the case? Justify your answer.

Reference no: EM131896615

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