A Stock Split

question 15

Multiple Choice

A stock split

• A) is a form of stock dividend.
• B) decreases the number of outstanding shares of a corporation.
• C) increases the capital of a corporation.
• D) is the proportionate division of all author- ized shares of a class of stock into two or more shares.

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Definitions:

Present Value

Today’s value of a prospective amount of money or cash flow series, determined by a predefined rate of return.

Payment Options

Various methods available for consumers to make transactions, such as cash, credit cards, and electronic transfers.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage.