What is the importance of stock split

Assignment Help Accounting Basics
Reference no: EM133044154

Question - Companies continually struggle on whether they should issue and grow their dividends or retain the money back into the company itself as retained earnings. This is the difference between new growth companies that may not have any profits just yet and long-term established companies with a long history of earnings and distributions.

a. Which is more important to a company dividend payouts or retaining all the income and why? Give an example of each and why.

b. Related to this topic is that sometimes company sometimes goes through stock splits or repurchase of their own shares. What is the importance of stock split, stock repurchase, and reverse stock splits? List a pro and con of each along with an example of a company that has gone through this.

Reference no: EM133044154

Questions Cloud

Explain the significance of the statement of cash flow : Explain the significance of the statement of cash flow. What is the distinction between the indirect method and the direct method
Find the breakeven price of the dryer : A dealer made a net profit of 40% based in cost when he sold a dryer for RM1,350. If operating expenses incurred were 10% of the cost. Find the breakeven price
What is the net present value at the end of years : The Enterprise Fund collects $252,809 in pool membership charges in the first year. What is the Net Present Value at the end of 10 years
What is a linked object in a destination file : What is a linked object in a destination file? Give an example. What is the difference between linking and embedding. Give an example
What is the importance of stock split : Related to this topic is that sometimes company sometimes goes through stock splits or repurchase of their own shares. What is the importance of stock split
What amount of unearned franchise fees from heart : If the present value of the two annual payments is P895,000. What amount of unearned franchise fees from Heart should Brave report on December 31, 2010
How much overhead would be allocated to the period : If the actual direct labor hours for the period are 350,000, how much overhead would be allocated to the period
Determine dividends per share for preferred and common stock : Question - Sandpiper Company has 10,000 shares of cumulative preferred 2% stock, Determine dividends per share for preferred and common stock
Discuss ethics of cruise lines regarding avoidance tax : Discuss the ethics of cruise lines regarding the avoidance of income taxes while buying ships built with governmental subsidies

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd