Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

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Stock Dividends and Stock Splits
Assume that when you were in high school you saved $1,000 to invest for your college education.ou purchased 200 shares of Smiley Incorporated, a small but profitable company.ver the three years that you have owned the stock, the corporation's board of directors have taken the following actions:
1.eclared a 2-for-l stock split.
2.eclared a 20 percent stock dividend.
3.eclared a 3-for-l stock split.
The current price of the stock is $12 per share.
a.alculate the current number of shares and the market value of your investment.
b.xplain the likely reason the board of directors of the company has not declared a cash dividend.
c.tate your opinion as to whether or not you would have been better off if the board of directors had declared a cash dividend instead of the stock dividend and stock spiits.