An Increase in a fiRm's Number of Shares Outstanding Without

question 56

Multiple Choice

An increase in a firm's number of shares outstanding without any change in owners' equity is called a:

• A)special dividend.
• B)stock split.
• C)share repurchase.
• D)tender offer.
• E)liquidating dividend.

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Definitions:

Operating Activities

Transactions and other events that affect the net income of a business, relating to its principal revenue-producing activities.

Accounting Equation

The fundamental equation of accounting, representing the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Equity).

Cash Dividend

A payment made by a company out of its profits to its shareholders, typically in the form of cash.

Stockholders' Equity

The portion of a company's assets that belongs to the shareholders, calculated as the company's total assets minus its total liabilities.