Even If a Stock Split Has No Information Content, and Even

question 48

True/False

Even if a stock split has no information content, and even if the dividend per share adjusted for the split does not increase, there can still be a real benefit (i.e., a higher value for shareholders) from such a split, but any such benefit is probably small.

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Definitions:

Oral Messages

Spoken communication or information conveyed verbally, in person or through electronic means.

Written Messages

Communication conveyed through the written word as opposed to spoken word or visual images.

Future Hardship

Anticipated or potential difficulty or suffering that is expected to occur in the future, often used in planning or forecasting.

Past Success

A reference to previous accomplishments or achievements that demonstrate competence or the ability to meet objectives.