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Explain How Both a Stock Split and a Stock Dividend

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Essay

Explain how both a stock split and a stock dividend affect the computation of the weighted-average number of shares outstanding.


Definitions:

Compounded Monthly

Interest on an investment calculated each month and added to the principal sum, leading to exponential growth of the investment.

Minimum Rate

The lowest possible interest rate that could be applied to a loan or financial product.

Guaranteeing Month-end

ensuring financial or operational activities are completed or accounted for at the end of each month.

20-year Annuity

A financial product that provides a stream of payments to the holder for a period of 20 years.

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