Question:
Which one of the following is true regarding a stock split?
a. The corporate assets of the company will lose book value.
b. The par value of the stock is unchanged.
c. The existing stockholders are given more rights than they had before the split.
d. The stockholder's percentage ownership remains unchanged.
Earnings Per Share:
The EPS of a company is a ratio used in trade analysis and estimation of the total earning to a shareholder. The total earnings will depend on the number of shares, and the magnitude of EPS will also influence the total earnings.
Answer and Explanation:1
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The answer is d. The stockholder's percentage ownership remains unchanged.
A stock split refers to the situation where the number of stocks or...
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