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

question 12

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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Definitions:

Markov Analysis

A statistical technique used to forecast the future behavior of a system or process based on its current state and known transition probabilities.

SWOT Analysis

A comparison of strengths, weaknesses, opportunities, and threats for strategy formulation purposes.

HRIS Supervisor's

The individual responsible for overseeing the Human Resource Information System (HRIS), ensuring the management, input, and accuracy of employee data and information systems.

Statistical Analysis

The process of collecting, examining, interpreting, and presenting data to discover underlying patterns and trends.