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  3. big meadows sports has been very profitable in rec

Big Meadows Sports has been very profitable in recent years and has seen its stock...

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Question

Accounting

Big Meadows Sports has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share.

The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split.

Required:

  1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price
  2. State whether the statement "The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors." is true or false.
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Complete the following table comparing the effects of a 100\% stock divic equity accounts, shares outstanding, par value, and share price. (Round State whether the statement "The primary reason companies declare a large stock dlvidend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractlve to a larger number of potential investors." is true or false

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