In Substance,there Is Absolutely No Difference Between the 100% Stock

question 11

True/False

In substance,there is absolutely no difference between the 100% stock dividend and the two-for-one stock split.

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Definitions:

Pretax Net Income

The amount of income that a company has earned before any taxes have been deducted.

CVP Analysis

Cost-Volume-Profit Analysis, a financial tool used to determine how changes in cost and volume affect a company's operating income and net income.

Pre-Tax Net Income

The income earned by a business before the deduction of tax expenses.

Variable Costs

Expenses that change in proportion to the activity of a business, such as the cost of raw materials.