Problem: Corporate Finance
APPLE is only one of the multiple companies that have approved and declared a stock split, the most recent one on a 4-for-1 basis last August 28, 2020. Analyze and explain:
o What is a stock split;
o Why do you think that APPLE has approved this stock split decision;
o How has that the stock split affected APPLE's stocks' value;
o What is the APPLE's current dividend payout ratio;
o How do you think that the APPLE's dividend payout ratio may affect to the stocks' value.
This exercise assesses the following learning outcomes:
o the evaluation of the dividend payout ratio,
o the trade-off between paying dividends and retaining the profits within the company,
o the purpose and procedure related to stock repurchases, and
o the evaluation and advice on a firm going from private to a public company.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.