Explain How Both a Stock Split and a Stock Dividend

question 2

Essay

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

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Definitions:

Potential

Refers to the capacity or ability that something or someone has to develop, achieve, or become something more in the future.

Loss

The state of being deprived of or of being without something that one has had.

Casualty Insurance

Insurance that protects a party from accidental injury.

Accidental Injury

Physical harm or damage to a person resulting from an unexpected event or incident.