Stock Splits and Stock Dividends Have the Following Effects on Retained

question 54

Multiple Choice

Stock splits and stock dividends have the following effects on retained earnings:

• A) Option A
• B) Option B
• C) Option C
• D) Option D

---

Definitions:

CAPM

Short for Capital Asset Pricing Model, a financial model that describes the relationship between systematic risk and expected return for assets.

Required Rates of Return

The minimum annual percentage earnings needed from an investment to compensate for its risk, serving as a benchmark for evaluating potential investments.

Standard Deviations

A statistical measure of the dispersion or variability of a set of data points or investment returns from their average value.

Expected Return

The weighted average of the probable returns of an investment, calculated based on past performance or statistical analyses.