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

question 46

True/False

Even if a stock split has no information content, and even if the dividend per share adjusted for the split is not increased, 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:

Perceived Distance

The subjective estimation or impression of the space between oneself and an object or between two points.

Smaller Retinal Image

refers to the phenomenon where objects that are farther away from the observer project a smaller image on the retina than those that are close by.

More Distant

Being more distant refers to a position that is further away in space or time, or to relationships that are less close or less involved emotionally.

Perceptual Constancy

Perceiving objects as unchanging (having consistent shapes, size, lightness, and color) even as illumination and retinal images change.