A 3-For-1 Common Stock Split

question 128

Multiple Choice

A 3-for-1 common stock split,

• A)Will likely not affect the market value of the stock
• B)Has no effect on common share account
• C)Will cause a change in the allocation of dividends to common stock relative to preferred stock
• D)Decreases retained earnings by the par value of shares distributed in the split

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Definitions:

Group Insurance

An insurance policy that covers multiple people under one contract, typically offered by employers, associations, or organizations.

Employer

An individual or organization that hires and pays for the services of workers under an expressed or implied contract of employment.

Indemnity Plan

Compensation for damage done or loss caused.

Commercial Plan

A detailed proposal for a business venture or project, emphasizing strategies for marketing, operation, and financial management.