How Can You Use DFDs as an Analysis Tool

question 50

Essay

How can you use DFDs as an analysis tool?

Understand the impact of stock splits and reverse stock splits on shareholder equity and the number of shares outstanding.

Calculate the outcome of stock splits and reverse stock splits.

Interpret the effects of dividend policies and stock repurchase programs on a company's stock price and shareholders.

Determine the retention ratio and its significance in dividend policy decisions.