Hillerbert Company Declared a 2-For-1 Stock Split on Its 200,000

question 43

Multiple Choice

Hillerbert Company declared a 2-for-1 stock split on its 200,000 shares of $10 par value common stock. As a result of this transaction:

• A)Paid-in Capital increases by $2,000.
• B)Common Stock increases to $4,000,000.
• C)both A and B are correct.
• D)none of these answers is correct.

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Definitions:

Least Squares Estimate

A method of estimating the parameters of a linear regression line by minimizing the sum of the squares of the differences between the observed and predicted values.

Y-intercept

The point where a line crosses the Y-axis of a graph, indicating the value of the dependent variable when the independent variable is zero.

Independent Variable

A variable in an experiment or study that is manipulated to observe its effect on a dependent variable.

SSE

Squared Error Sum, a statistical metric that quantifies the difference between observed data and a predictive model's estimates.