Even If a Stock Split Has No Information Content, and Even

question 48

True/False

Even if a stock split has no information content, and even if the dividend per share adjusted for the split does not increase, there can still be a real benefit (i.e., a higher value for shareholders) from such a split, but any such benefit is probably small.

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Definitions:

Opposing Flat Surfaces

Two surfaces facing each other with minimal curvature, typically parallel, allowing for close contact or interaction.

Saddle

A type of synovial joint that allows movements in several axes, found in areas such as the thumb base, characterized by fitting together like a rider and a saddle.

Hinge

A joint or mechanism that allows parts to pivot or swing around a fixed point, often found in doors or lids.

Pivot

Pivot refers to a central point, pin, or shaft on which a mechanism turns or oscillates, enabling movement or rotation around a single axis.