The Only Definite Result from a Stock Dividend or a Stock

question 34

Multiple Choice

The only definite result from a stock dividend or a stock split is

• A) an increase in the P/E ratio.
• B) an increase in the common stock's market value.
• C) an increase in the number of shares outstanding.
• D) cannot be determined from the above.

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Definitions:

Price of An Input

The cost associated with purchasing goods or services used in the production process.

Breaking Even

The point at which total revenues exactly equal total expenses, resulting in no net profit or loss.

Produce

To create or manufacture goods and services for consumer use, often involving a combination of raw materials, labor, and machinery.

Leave the Industry

The process by which firms exit a market or cease operations, often due to unfavorable market conditions or insufficient profits.