Which of the Following Statements About Stock Splits Is Correct

question 28

Multiple Choice

Which of the following statements about stock splits is correct?

• A)Stock splits have no effect on the per-share par value of the stock.
• B)Stock splits do not affect a firm's financial statements.
• C)All else equal, a stock split generally leads to an increase in the total dividends paid by a company when the split occurs.
• D)A company generally initiates a stock split to decrease the proportion of common stock contained in its capital structure.
• E)Stock splits should have no effect on a firm's market value.

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Clean Air Act

A comprehensive federal law in the United States that regulates air emissions from stationary and mobile sources in order to protect public health and the environment.

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