Have you ever experienced a stock split? Did it change your ownership position with the company? Did it enhance the stock price? Why would a company do a stock split? A reverse stock split?© BrainMass Inc. brainmass.com October 16, 2018, 4:25 pm ad1c9bdddf
Have you ever experienced a stock split? Did it change your ownership position with the company? Did it enhance the stock price? Why would a company do a stock split? A reverse stock split?
Stock splits occur all the time. Some recent examples: WEST PHARMACEUTICAL SERVICES, INC., CATHAY GENERAL BANCORP, STIFEL FINANCIAL CORP. (You can give your own example)
A stock split occurs when a publicly held company distributes more stock to holders of an existing stock. For example, with a 2-for-1 split, a company will issue one additional share for every share that a holder has. Stock splits are similar to stock dividends in that the shareholder owns more shares afterwards. However, it is different in magnitude and accounting treatment. With a stock split all the old shares are extinguished and new shares are issued with a new par value. Typically, in a stock split the ...
The solution discusses with the help of examples Stock Split and Reverse Stock Split.
Stock Dividend , Stock Split, Reverse Stock Split and ROE for Menomonie Publishing
1) Menomonie Publishing stock currently sells for $40 per share. The company has 1,200,000 shares outstanding. What would be the effect on the number of shares outstanding and on the stock price of the following:
15% Stock Dividend
4-for-3 Stock Split
Reverse 3-for-1 Stock Split
2) Last year both Hudson Homes and Baldwin Construction earned $1 million in net income. Both companies have assets of $10 million. Hudson generated a return on equity of 11.1%, whereas Baldwin produced a return on equity of 20.0%. What can explain the differences in return on equity between the two companies?View Full Posting Details