In: Accounting
Alcoa is the world's leading producer of primary aluminum, fabricated aluminum, and alumina. The following is a press release from the company:
Alcoa Announces 33% Increase in Base Dividend, 2-for -1 Stock Split
PITTSBURGH—Alcoa today announced that its Board of Directors approved a base quarterly dividend increase of 33.3%. Alcoa's announcement indicated that the new quarterly dividend would be 25 cents per share. It also stated that the Board of Directors declared a two-for-one stock split and reaffirmed its commitment to a stock repurchase program. Your boss, Mr. Scott, has written you a simple note to the effect, “What options do we have in accounting/reporting these actions as they take place?”
Required:
Respond to your boss (Mr. Living Scott) using a one page, 12 point-text memo. Be sure to include the following in your memo writeup:
Note: Keep in mind that a well written memo should include an introductory paragraph that CLEARLY states the purpose of your memo to your boss. Avoid much writing here – be specific and to the point.
Discussion paragraph(s) that addresses the questions posed. Note that you can have several paragraphs as long as they address different major points.
Usually a memo has a conclusion/recommendation paragraph but since this assignment does not require one, you can leave that out but find a professional way to end your memo and not just leaving it hanging.