Which One of the Following Is a Direct Result of a 2-For-1

question 15

Multiple Choice

Which one of the following is a direct result of a 2-for-1 stock split?

• A)a 100 percent increase in the number of shareholders
• B)a 100 percent increase in the common stock account balance
• C)a 100 percent decrease in the stock price
• D)a 50 percent increase in the number of shares outstanding
• E)a 50 percent decrease in the par value per share

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Definitions:

Future Shop

A now-defunct Canadian electronics retailer that was absorbed by Best Buy.

Normal Retail Price

The standard selling price of a good or service in the retail market before any discounts or promotions are applied.

Computers

Electronic devices that execute specific tasks based on programmed instructions, capable of processing, storing, and retrieving data.

Break-even Price

The price level at which revenues equal costs, resulting in neither profit nor loss.