After a 2-For-1 Stock Split

question 103

Multiple Choice

After a 2-for-1 stock split:

• A)earnings per share decrease.
• B)earnings per share increase.
• C)capitalization decreases.
• D)capitalization increases.
• E)dividend yields decrease.

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Definitions:

Unit Sales

The quantity of product units sold by a business during a specific period, often used to gauge performance.

Selling Price

The amount a buyer pays to acquire a product or service, potentially including discounts, allowances, and added taxes.

Fixed Expense

Costs that do not change with the level of production or business activity, such as rent or salaries.

Break-even

The juncture where the total expenses match the total income, leading to a situation where there is no profit or loss.