As a result of a stock split, a. an entry must be made showing the effect on

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As a result of a stock split,

a. an entry must be made showing the effect on stockholders’ equity.

b. the market price of the outstanding stock is increasing because a split is evidence of a profitable company.

c. the par value of the stock is changed in the reverse proportion as the stock split.

d. the stockholders have a higher proportionate ownership of the company.

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Cornerstones Of Financial Accounting Current Trends Update

ISBN: 9781111527952

1st Edition

Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen

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