Stock Splits Are

question 114

Multiple Choice

Stock splits are:

• A)a sign that the company is in need of more financial capital
• B)a sign that the company's stock price is too low.
• C)a sign that the company wants to get its stock price to a more desirable trading level.
• D)a sign that the company cannot pay its stock dividend.

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Definitions:

Aggregated Statements

These are financial statements that combine the financial data of several segments, subsidiaries, or different time periods of an organization into a single, comprehensive financial statement.

Percentage of Sales Approach

A financial planning model that estimates changes in balance sheet and income statement items as a direct percentage of changes in sales.

Financial Planning Method

A systematic approach to setting financial goals, developing and implementing plans to achieve those goals, and monitoring progress.