Issuing New Shares of Stock in a Five-For-One Split of Common

question 135

Multiple Choice

Issuing new shares of stock in a five-for-one split of common stock would:

• A)decrease the book value per share of common stock.
• B)increase the book value per share of common stock.
• C)increase total stockholders' equity.
• D)decrease total stockholders' equity.

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Definitions:

Two-factor Theory

A concept in psychology that proposes emotions are based on a combination of physical arousal and a cognitive label.

Schachter-Singer Theory

A theory of emotion that states emotions are derived from physiological arousal and the labeling of that arousal based on cognitive processing of the environment.

Two-factor Theory

A concept in psychology that suggests job satisfaction and dissatisfaction are influenced by separate and distinct factors, with hygiene factors affecting dissatisfaction and motivators affecting satisfaction.

Cognitive Label

The process of identifying and defining one's emotional state based on cognitive assessment of the situation.