Question about stock splits

Assignment Help International Economics

Reference no: EM1367930

From an accounting standpoint, stock splits neither add nor detract from the intrinsic value of the stock. For example, if stock was $100,paying a $2.50 dividend and underwent a 2:1 split, the $100 stock becomes two $50 stocks each paying a dividend of $1.25. However, the market often bids up the stock price upon stock splits. Please offer an explanation for this.

Reference no: EM1367930

Questions Cloud

Elucidate your response and show any movements in ppf : World Trade Center and Pentagon affected short and/or long-term productivity in United States. Elucidate your response and show any movements in PPF.

Contemporary nursing research : Comment on why qualitative research might be undervalued and under-utilized in contemporary nursing research. Describe one or two methods used to gain the qualitative information.

Question about success and failure : Describe a change management project that went well and one that did not go well. What factors do you think lead to the success or failure of the project and What role did sequencing play in the success or failure

Show result of inserting keys using linear probing : Show the result of inserting these keys using linear probing, using quadratic probing with c1 = 1 and c2 = 3, and using double hashing with h2(k) = 1 + (k mod (m ¡ 1)).

Question about stock splits : From an accounting standpoint, stock splits neither add nor detract from the intrinsic value of the stock. For example, if stock was $100,paying a $2.50 dividend and underwent a 2:1 split,

Illustrate what kinds of statistics graphs author include : Illustrate what kinds of statistics, graphs, or illustrations does author include. In Illustrate what ways do se visuals strengthen author's arguments.

Determine average fixed cost : If the total cost of producing 20 units of output is $1000 and the average variable cost is $35, what is the firm's average fixed cost at that level of output?

Employee competence and accountability measurements : Do we have a responsibility to our staff and society to promote and encourage individual or personal responsibility - Is there a way to have an individual become accountable for his or her own actions

Qualitative research report-nursing research : This is for a graduate level nursing research subject in which I require to analyze only three parts of any qualitative research report, but before I do this, I need your help in understanding what would those sections be?

User Account

All Pages