CB Corporation Issued a 2 for 1 Stock Split

question 127

Multiple Choice

CB Corporation issued a 2 for 1 stock split.Which of the following is NOT a true statement concerning the effect of the split?

• A)A proportionate reduction in the par value per share occurs.
• B)The number of shares outstanding is increased.
• C)There is a continuation of retained earnings with no reduction in its balance.
• D)There is a transfer of retained earnings to contributed capital.

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Definitions:

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A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

Coupon Program

A promotional tool used by businesses to offer discounts or special deals to customers, often to encourage purchases or trial of new products.

Laundry Detergent

A cleaning product specifically designed for washing clothes, which removes dirt and stains from fabrics.