Asked by Bryce Takeyama on Jun 25, 2024
Verified
Stock dividends and stock splits have the following effects on retained earnings:
Stock Splits
An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares.
Retained Earnings
The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business or to pay off debt.
- Understand the effects of stock splits and stock dividends on retained earnings and equity structure.
Verified Answer
KL
Learning Objectives
- Understand the effects of stock splits and stock dividends on retained earnings and equity structure.