Stock Splits Are Often Used To

question 47

Multiple Choice

Stock splits are often used to:

• A) adjust the market price of a stock such that it falls within a preferred trading range.
• B) decrease the excess cash held by a firm.
• C) increase both the number of shares outstanding and the market price per share simultaneously.
• D) increase the total equity of a firm.
• E) adjust the debt-equity ratio such that it falls within a preferred rangE.

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