S-A E 344 The ultimate effect of incurring an expense is to reduce equity. The declaration of a cash dividend also reduces equity. Explain the difference between an expense and a cash dividend and...

The ultimate effect of incurring an expense is to reduce equity. The declaration of a cash dividend also reduces equity. Explain the difference between an expense and a cash dividend and explain why they have the same effect on equity.

A large share dividend and share split can frequently have the same effect on the market price of a corporation's shares. Explain how share dividends and share splits affect the market price of a corporation's shares.

Why must a corporation have sufficient retained earnings before it may declare cash dividends?