What is effect of a stock dividend on book per share

Assignment Help Financial Accounting

Reference no: EM13914488

1. Upon receiving shares of stock from a stock dividend, why should the stockholder not consider the value of the stock as income?

2. What is the effect of a stock dividend or a stock split on book value per share?

3. Why do many companies like to give stock options as compensation?

4. What relevance does par value or stated value have to a financial ratio, such as return on equity or debt to equity?

Reference no: EM13914488

Questions Cloud

Find the chart below which identifies the data set : Please find the chart below which identifies the data set and the 5 functions you must compute. As you can see, you will be using six data sets and computing a few different functions for each test

What is the current share price for the soviet motor stock : Soviet Motors Co. just paid a dividend of $2.0 per share. The dividends are expected to grow at a rate of 25% for the next two years, with the growth rate falling off to a constant 7 percent thereafter. If you require a 16% return on your investment,..

About the price is right-what is the present value : Much to your surprise, you were selected to appear on the TV show "The Price is Right". As a result of your powers in identifying how many rolls of toilet paper a typical American family keeps on hand, you win the opportunity to choose one of the fol..

Relaxation technique involving visualization : Imagine you are a researcher who believes that a relaxation technique involving visualization will help people with mild insomnia fall asleep faster. You randomly select a sample of 20 participants from a population of mild insomnia patients and r..

What is effect of a stock dividend on book per share : What is the effect of a stock dividend or a stock split on book value per share? Why do many companies like to give stock options as compensation?

Choice of borrowing money from a finance : You have a choice of borrowing money from a finance company at 22 percent compounded monthly or borrowing money from a bank at 24 percent compounded weekly. Which alternative is the most attractive? If you can borrow funds from a finance company at 2..

Problem regarding food shopping trends : This Discussion should be an eye opener for most students. We will look at our food shopping trends and how we spend our money. The outcomes should reveal some interesting facts.

Describe the key features of insurance coverages : Rob Worley of Richmond, Virginia, is a divorced 40-year-old loan officer at the Dominion Bank; he has a 16-year-old son. He has decided to use his annual bonus as a down payment on a new car.. Apply what you have learned on automobile insurance to re..

Why is design for recycling, as practiced by bmw group : Explore the design for recycling approach employed by another automobile manufac- turer, such as Toyota or another manufac- turer, and compare it to that of BMW Group.

User Account

All Pages