A 2-For-1 Stock Split

question 23

Multiple Choice

A 2-for-1 stock split

• A)increases the number of shares of stock held by the firm's stockholders.
• B)increases the per share price of the firm's stock.
• C)requires stockholders to invest more money in the firm's stock.
• D)requires the firm to adjust the value of its total assets on the balance sheet.
• E)generally decreases the total value of the firm that splits its stock.

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Definitions:

Total Revenue

The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.

Profit Maximized

A state or point at which a business achieves its highest possible profit with its current resources and market conditions.

Coffee Farm

A farm where coffee plants are cultivated for their beans.

Market Price

The present cost at which an item or service may be purchased or sold in a market setting.