If a Corporation Declares a 2-For-1 Stock Split, Which of the Following

question 82

Multiple Choice

If a corporation declares a 2-for-1 stock split, which of the following is true?

• A) The amount of stockholders' equity doubles as a result of the split.
• B) The amount of capital stock doubles as a result of the split.
• C) The price of each share will be doubled as a result of the split.
• D) A stockholder who previously held 100 shares will have 200 shares after the split.

Comprehend and calculate combinations and understand the difference between combinations and permutations.

Understand the fundamental principles of probability, including sample spaces, mutually exclusive events, and conditional probability.

Construct and analyze sample spaces for various scenarios and calculate probabilities based on these spaces.

Apply the multiplication principle to calculate the total number of possible outcomes in a given scenario.

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Definitions:

Long-run Aggregate Supply

The total production of goods and services in an economy at full employment, assuming no changes in technology and resources.

Lockbox System

A service provided by banks to companies for the collection of payments from customers, involving the use of a special post office box.

Cash Conversion

The process by which a company turns its inventory or other current assets into cash, often measured through cycles or time periods.

Usable Cash

The portion of cash balances that is readily available for business operations or other immediate use, excluding reserved or allocated funds.