Which of the Following Statements Accurately Explains Why the Board

question 14

Multiple Choice

Which of the following statements accurately explains why the board of directors of a company whose financial future contains some uncertainties might issue a 2-for-1 stock split rather than declare a 100% stock dividend?

• A)A stock split would not reduce the market price per share,whereas a stock dividend would.
• B)A stock split would reduce the market price per share,whereas a stock dividend would not.
• C)A stock split would increase total stockholders' equity,whereas a stock dividend would not.
• D)A stock split would not reduce retained earnings,whereas a stock dividend would.

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Definitions:

TreeSet< T >

A navigable set implementation based on a Red-Black tree, which stores its elements in sorted, ascending order.

Boolean

Refers to a primitive data type that has only two possible values: true or false.

Data Structure

A data structure is a particular way of organizing and storing data in a computer so that it can be used efficiently.

Collection

In programming, a collection is an object that groups multiple elements into a single unit. Collections are used to store, retrieve, manipulate, and communicate aggregate data.