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Category > Accounting Posted 29 Jul 2017 My Price 5.00

Stock Dividends versus Stock Splits

Stock Dividends versus Stock Splits

Campbell Company wants to increase the number of shares of its common stock outstanding and

is considering a stock dividend versus a stock split. The Stockholders’ Equity section of the firm’s

most recent balance sheet appeared as follows:

If a stock dividend is chosen, the firm wants to declare a 100% stock dividend. Because the stock dividend qualifies as a “large stock dividend,” it must be recorded at par value. If a stock split is chosen, Campbell will declare a 2-for-1 split.

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Maurice Tutor
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Status NEW Posted 29 Jul 2017 10:07 AM My Price 5.00

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