Conceptually, does a 2-for-1 stock split immediately increase an investors personal wealth? a. No, because the stock
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Conceptually, does a 2-for-1 stock split immediately increase an investor’s personal wealth?
a. No, because the stock price per share drops by half when the number of shares doubles.
b. Yes, because the investor has more shares.
c. Yes, because the investor acquired additional shares without paying a brokerage fee.
d. Yes, because the investor will receive more in cash dividends by owning more shares.
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Related Book For
Financial Accounting
ISBN: 9781264229734
11th Edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
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