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Exhibit 11-2 The phase diagram below is needed for the following question(s) .
Refer to Exhibit 11-2. If one is at position A and the pressure is increased, which statement below is true?
Paid in Excess
Funds that are received by a company over and above the par value of its stock; typically recorded as part of the additional paid-in capital on the balance sheet.
Retained Earnings
Profits that a company keeps or retains rather than distributing to shareholders as dividends, often used for reinvestment.
Stock Split
A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the market capitalization remains the same.
Repurchase of Stock
This refers to a scenario where a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.
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