A 3-For-1 Common Stock Split

question 132

Multiple Choice

A 3-for-1 common stock split,

• A) Decreases retained earnings by the par value of shares distributed in the split
• B) Will likely not affect the market value of the stock
• C) Has no effect on common share account
• D) Will cause a change in the allocation of dividends to common stock relative to preferred stock

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Scientific Method

A method of research with defined steps that include experiments and careful observation to validate or disprove a hypothesis.

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