The Shareholders' Equity Section of the Balance Sheet of the XYZ

question 22

Multiple Choice

The shareholders' equity section of the balance sheet of the XYZ Corp. is as follows: If the company now splits its stock 5-for-1, which of the following is correct?

• A) The common stock section will increase to $100,000,000.
• B) The market price per share will probably remain unchanged.
• C) The book value per share will decline to $17.60.
• D) The number of shares outstanding will increase.

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Definitions:

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