How stock dividends or stock split may help achieve goals

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Most firms would like to have their stock selling at a high P/E ratio, and they would also like to have extensive public ownership (many different shareholders). Explain how stock dividends or stock split may help achieve these goals.

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 percent stock dividend or a two-for-one split? Assume that either action is feasible.

 

Reference no: EM13304276

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