The effect of ______________ and _______________ on the value of a firm's stock and the wealth of shareholders is zero.

Question

Quizplus · Accepted Answer

Stock dividends and stock splits do not affect the overall value of a firm or the wealth of shareholders. Stock dividends simply redistribute the value of the company, while stock splits increase the number of shares outstanding without changing the underlying value of the company. Therefore, both events have no impact on stock price or wealth. Cash dividends, on the other hand, provide a direct payment to shareholders, while stock splits and stock dividends do not provide any additional cash flow. Bond dividends are not a common type of dividend and do not directly relate to stock prices or shareholder wealth.

The Effect of ______________ and _______________ on the Value of a Firm's

The Effect of and _ on the Value of a Firm's