Which Statement Is False

question 80

Multiple Choice

Which statement is false?

• A)Typically the par value of common stock is adjusted for a stock split.
• B)There are no costs to the company when issuing stock splits or stock dividends.
• C)In both a stock split and a stock dividend,the shareholders have the same ownership interest after the stock split or stock dividend as they had before the stock split or stock dividend.
• D)Ignoring the effect of fractional shares,both stock splits and stock dividends issue shares of common stock without any additional cash payments.
• E)Stock splits are often used to keep a company's stock price low enough to maintain its price within a reasonable trading range.

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Definitions:

Emotional Lability

A condition of emotional instability characterized by rapid and extreme mood changes.

Self-Perception

A theory suggesting individuals infer their attitudes and feelings by observing their own behavior and the context in which it occurs.

Achievement Attribution

The process of assigning causes or reasons to one's successes or failures.

Controllability

The degree to which an individual perceives they have control over events or outcomes in their life or environment.