Which Statement Is True About a Share Split

question 108

Multiple Choice

Which statement is true about a share split?

• A) Total shareholders' equity increases.
• B) Total shareholders' equity decreases.
• C) Total shareholders' equity remains the same.
• D) A change in total shareholders' equity depends upon whether it is a 2-for-1 split or a 1-for-2 split.

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Definitions:

Today's Dollars

A term referring to the current value of money, taking into account inflation or deflation, to compare purchasing power over time.

Accept Project

The decision-making process to proceed with a particular project based on its projected profitability or strategic value.

Discounted Payback Period

The time it takes for an investment to break even in terms of present value.

Positive NPV

A situation where the net present value of a project or investment is greater than zero, indicating that the project is expected to generate value over its cost.