A Feature Common to Both Stock Splits and Stock Dividends

question 10

Multiple Choice

A feature common to both stock splits and stock dividends is

• A) A reduction in total capital of a corporation
• B) A transfer from earned capital to paid-in capital
• C) A reduction in book value per share
• D) Inclusion in conventional statement of source and application of funds

Calculate capital gains yield and dividend yield based on expected total returns and dividend growth rates.

Comprehend the effects of dividend policies on stock valuation.

Calculate the price of a stock based on different growth rates and expected returns.

Understand the principle of cumulative and straight voting processes in corporate governance.