When a Firm Announces a Two-For-One Stock Split (In the Absence

question 104

Multiple Choice

When a firm announces a two-for-one stock split (in the absence of other new information) , investors should expect that:

• A)earnings per share will fall by half but stock price will remain the same.
• B)stock price will fall by half but earnings per share will remain the same.
• C)both earnings per share and stock price will remain the same.
• D)both earnings per share and stock price will fall by half.

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Civic Club

An organization of citizens focused on promoting community welfare, civic improvements, and social activities.

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A business that has the authorization to distribute beer from manufacturers to retailers.

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