Stock Dividends or Splits may increase P/E and public ownership
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Most firms would like to have their stock selling at high P/E ratio, and they would also like to have extensive public ownership (many different shareholders). Explain how stock dividends or stock splits may help achieve these goals.
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Solution Summary
The solution examines stock dividends or splits which may increase P/E and public ownership.
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ANSWERS
Individual investors or shareholders have their own unique investment requirement. Some require a high rate of return through the sustainable increase in stock price while others want to receive periodic cash through dividend ...
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