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:

Positive Statement

An objective statement based on factual information or data that can be tested or rejected through observation.

Normative Statement

A value-based statement that expresses an opinion about what ought to be rather than what is factual.

Oil Refineries

Facilities where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, and heating oil.

Growing Demand

An increase in the quantity of a product or service that consumers are willing and able to buy over a given period.