Something must be wrong, because I think Jon T. and I agree on something. Irrespective of the stock dividend, you have the same pie to divide up (ie.., the ESVS company). The pie does not double in size, like magic. A company can't double its assets, revenues, receivables, contracts, etc., by imposing a stock dividend upon its shareholders. If such magic worked, every company would be doing this every other day.
In short, you now have 2x as many shares of stock with which to divide the pie. Each share is going to get 1/2 as much pie as before the stock dividend, but in total each shareholder keeps as much of the pie as before because he/she has 2x as many pieces of the pie.
There just can't be any other result, my friends. |
