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Stock Split or Stock Repurchase plan

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Name a firm that has gone through a "stock split" or a "stock repurchase plan" and briefly state why you think the firm executed the stock split.

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Cognos Inc. provides business intelligence (BI) and corporate performance management software (CPM) solutions. It has gone through a stock repurchase plan in which they receive the authorization to buyback to $200 million of its common stock. It has already bought back $61.6 million worth ...

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This solution is comprised of a detailed explanation to name a firm that has gone through a "stock split" or a "stock repurchase plan" and state why the firm executed the stock split.

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Stock Repurchase, Dividend Policy

1) Indicate whether the following statements are true or false. If the statement is false, explain why.

a. If a firm repurchases its stock in the open market, the shareholders who tender the stock are subject to capital gains taxes.

b. If you own 100 shares in a company's stock and the company's stock splits 2-for-1, you will own 200 shares in the company following the split.

c. Some dividend reinvestment plans increase the amount of equity capital available to the firm.

d. The Tax Code encourages companies to pay a large percentage of their net income in the form of dividends

e. If your company has established a clientele of investors who prefer large dividends, the company is unlikely to adopt a residual dividend policy.

f. If a firm follows a residual dividend policy, holding all else constant, its dividend payout will tend to rise whenever the firm's investment opportunities improve.

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