Share Splits Increase

question 21

Multiple Choice

Share splits increase:

• A) total assets.
• B) total liabilities.
• C) total shareholders' equity.
• D) the number of shares on issue.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Net Cash Flows

The difference between a company's total cash inflows and total cash outflows over a specific period, highlighting its financial health.

Weighted Cost

Refers to the cost of capital that is calculated by taking the weighted average of the costs of all sources of capital, including debt and equity.