Unformatted text preview: directors to increase the quantity of shares and channel share prices into the “popular trading range.” For accounting purposes the 20%-25% rule reasonably views large stock dividends as substantive stock splits. It is necessary to capitalize par value with a stock dividend because the number of shares is increased and the par value remains the same. Earnings are capitalized for purely procedural reasons....
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This note was uploaded on 10/22/2008 for the course ACC 449 taught by Professor Long during the Summer '08 term at University of Phoenix.
- Summer '08