Asked by elizabeth odegard on Jun 16, 2024
Verified
A 3-for-1 stock split will reduce the per share par value and will
A) decrease the number of shares proportionately.
B) decrease earnings per share.
C) increase owners' equity.
D) increase the total par value of the common stock.
Stock Split
A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.
Par Value
The nominal or face value of a bond or stock as stated by the issuing company, not necessarily reflecting its market value.
Earnings Per Share
Earnings Per Share (EPS) measures the portion of a company's profit allocated to each outstanding share, indicating a company’s financial performance.
- Understand the impact of stock transactions on shareholders' equity.
Verified Answer
Learning Objectives
- Understand the impact of stock transactions on shareholders' equity.
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