When a Company Declares a 2-For-1 Stock Split

question 192

Multiple Choice

When a company declares a 2-for-1 stock split,

• A)stockholders' equity is doubled.
• B)there is no effect on total stockholders' equity.
• C)a shareholder who previously held 100 shares will have 300 shares after the split.
• D)the price of each share will be one-third of what it was before the stock split.

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Definitions:

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