Which of the Following Occurs When the Board of Directors

question 132

Multiple Choice

Which of the following occurs when the board of directors declares a 3-for-1 stock split on 20,000 outstanding shares of $25 par common stock?

• A) The par value of the stock remains the same.
• B) The par value of the stock increases to $50 per share.
• C) The number of outstanding shares remains at 20,000.
• D) The number of outstanding shares increases to 60,000.

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Definitions:

Premises

Premises are statements or propositions that provide the basis or grounds for a conclusion in logical reasoning.

Generalization

A principle, statement, or idea having general applicability, often involving a conclusion drawn from specific cases that is applied more broadly.

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Individuals who travel by getting free rides from passing vehicles, often seen as an adventurous mode of travel.

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Physical activity that increases heart rate and blood circulation, benefiting the heart and vascular system.