A Stock Split

question 22

Multiple Choice

A stock split

• A) may occur in the absence of retained earnings.
• B) will increase total paid-in capital.
• C) will increase the total par value of the stock.
• D) will have no effect on the par value per share of stock.

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Definitions:

Highly Substitutable

Referring to goods or services that can easily replace each other in consumption or use.

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period.