18 Nov Which increases a shareholder wealth more, a stock dividend or a stock split?
Order Instructions
I do not need an essay, I just need the following questions answered.
1. Which increases a shareholder wealth more, a stock dividend or a stock split?
2. What three conditions must exist for dividends to be paid?
3. When is a company required to pay dividends to shareholders?
4. Assets – Liabilities = Equity. So, theoretically, a company’s “worth” is equal to its owners’ equity. Theoretically……..
Walmart’s total equity is about $87.5 billion. So, we might think that Walmart is worth about $87.5 billion.
But, what would it cost to buy 100% of Walmart?
Walmart has about 2.8 billion shares of common stock outstanding. The current market price per share is about $150 (as of 8/17/21). So, to buy all of Walmart’s outstanding stock would cost $150 times 2.8 billion, or about $420 billion. (This is called market capitalization.)
Even though equity is only $87.5 billion it would actually cost $420 billion to buy all of Walmart.
So, what’s going on?
If the balance sheet says Walmart is worth about $87.5 billion why is the total stock value around $420 billion?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.