All Else Equal, a "Normal" Share Split

question 12

Multiple Choice

All else equal, a "normal" share split

• A) generally results in a significant increase in the per share price of the share from what it was before the split.
• B) reduces the number of shares outstanding.
• C) increases the number of shares outstanding.
• D) does not need to be recognised in any way in the financial position of a corporation.
• E) increase the dividend per share.

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Definitions:

Categorical

Pertaining to absolute and unconditional statements or classifications.

Ethical

Relating to morals, focusing on right and wrong conduct.

Categorical Imperative

A central concept in the ethical philosophy of Immanuel Kant, stating that one should act only according to that maxim whereby you can, at the same time, will that it should become a universal law.

Motives of Vanity

The driving factors behind actions that are primarily focused on excessive pride in one's appearance or achievements.