As a Result of a Stock Split

question 73

Multiple Choice

As a result of a stock split,

• A)an entry must be made showing the effect on stockholders' equity.
• B)the market price of the outstanding stock will increase because a split is evidence of a profitable company.
• C)the par value of the stock is changed in the reverse proportion as the stock split.
• D)the stockholders have a higher proportionate ownership of the company.