accounting-In discussing stock dividends and stock splits in an investments

QUESTION

QUESTION 2In discussing stock dividends and stock splits in an investments class you are taking, one of the students says,“Stock splits and stock dividends are exactly the same-both are distributions of a company’s stock to existing owners without payment of the company.”REQUIRED:Do you agree with the students’ statement? Why and why not? Your arguments should be quote with relevant examples and real life cases.(Total: 25 marks)

ANSWER:

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