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

question 108

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 in half but stock price will remain the same.
• B) stock price will fall in 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:

Innate Immunity

The first line of defense in the immune system, consisting of physical, chemical, and cellular defenses against pathogens that are present from birth.

Plasma Cell

Cell derived from B cells; produces antibodies.

Antibodies

Proteins made by the immune system that are responsible for identifying and deactivating foreign entities such as viruses and bacteria.

Memory B Cell

A type of B cell that remains after an initial immune response and can quickly respond to subsequent exposures to the same antigen.