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A Stock Split Decreases Par Value Per Share,whereas Stock Dividends

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True/False

A stock split decreases par value per share,whereas stock dividends do not affect par value per share.


Definitions:

Equilibrium Interest Rate

The interest rate at which the quantity of loanable funds demanded equals the quantity of loanable funds supplied.

Loanable Funds

refers to the pool of funds available for borrowing, consisting of savings made available to borrowers in the financial markets.

Quantities Demanded

The total amount of a good or service that consumers wish to purchase at any given price level.

Time-Value of Money

A finance principle that suggests money available now is worth more than the same amount in the future due to its potential earning capacity.

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