▲ 14 r/financialmodelling
Stock as dividend in financial modeling
Hi everyone, I’d like to understand how analysts model a stock dividend in the equity schedule or retained earnings schedule.
Since this transaction transfers value from retained earnings to common equity without affecting cash, I’m not sure how it should be reflected in the model. Should I adjust something in the model with this?. Most of the resources I found only explain cash dividends, not stock dividends.
Thank you very much for answering this one
u/Gaap16 — 12 days ago