Question: Menomonie Publishing Stock currently sells for $40 per share. The company has 1,200,000 shares outstanding. What would be the effect on the number of shares and on the stock price of the following :
1) 15% Stock Dividend
2) 4-for-3 Stock Split
3) Reverse 3-for-1 Stock Split.
Last year both Hudson Homes and Baldwin Construction earned $ 1 million in net income . Both companies have assets of $10 million. Hudson generated a return on equity of 11,1% whereas Baldwin produced a return on equity of 20%. What can explain the differences in return on equity between the two.