Which One of the Following Increases the Number of Shares

question 63

Multiple Choice

Which one of the following increases the number of shares outstanding but does not change a firm's equity account values?

• A)Reverse stock split
• B)Cash distribution
• C)Stock split
• D)Liquidation dividend
• E)Special dividend

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Definitions:

45-Degree Line

In economics, a graphical representation used in Keynesian cross diagrams, where the line represents points where aggregate expenditure equals national income.

APC

The average propensity to consume, which is the ratio of consumption spending to disposable income.

Dissaving

Occurs when individuals withdraw funds from their savings, often due to expenditures exceeding income during a specific period.

Autonomous Consumption

The level of consumption that occurs when income is zero; it is the base level of spending that must occur even if an individual has no income.