easy · Private Equity accounting-flow
Under US GAAP, how does a dividend recapitalization typically affect the company's Balance Sheet?
- Shareholders' Equity increases because the company has successfully raised more capital.
- The transaction is a neutral event as the Enterprise Value remains constant.
- Both Assets and Liabilities increase by the amount of the dividend.
- Liabilities increase and Shareholders' Equity decreases by the amount of the dividend.
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