Which of the Following Statements Is Correct

question 47

Multiple Choice

Which of the following statements is correct?

• A)A 2-for-1 common stock split decreases both earnings per share and total stockholders' equity.
• B)A 10% common stock dividend decreases both earnings per share and total stockholders' equity.
• C)A 2-for-1 common stock split increases both the number of common shares outstanding and total stockholders' equity.
• D)A 30% common stock dividend increases the number of common shares outstanding and does not affect total stockholders' equity.

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Definitions:

Mortgage Payment

Regular payments made towards a mortgage loan, typically including both interest and principal.

Net Balance

The amount remaining in an account after all deductions are made, including potential expenses or charges.

Finance Charge

The total cost of borrowing, including interest and any other charges assessed by the creditor.

Monthly Interest Rate

The percentage of interest that is calculated and applied on a monthly basis to loans, savings, or investments.