All Else Equal, a "Normal" Stock Split

question 28

Multiple Choice

All else equal, a "normal" stock split

• A)generally results in a significant increase in the per share price of the stock from what it was before the split.
• B)reduces the number of shares of stock outstanding.
• C)increases the number of shares of stock outstanding.
• D)does not need to be recognized in any way on the balance sheet of a corporation.
• E)increase the dividend per share.

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Definitions:

SST

In statistics, SST stands for Total Sum of Squares, which is a measure of the total variance in a dataset, representing the sum of squared differences from the mean.

One-Way ANOVA

A statistical test that assesses whether there are any statistically significant differences between the means of three or more independent (unrelated) groups.

F Statistic

A ratio used in the analysis of variance (ANOVA) to determine whether the means of several groups are equal.

ANOVA Table

A table used in analysis of variance that shows the sources of variability in the data and helps in determining whether there are significant differences between group means.