Question: 1 . Why do companies split their stocks? Who benefits? Who loses? Is there any economic value created by a stock split? Explain. 2 .

1. Why do companies split their stocks? Who benefits? Who loses? Is there any economic value created by a stock split? Explain.
2. Explain how adding additional debt to the capital structure of firm can actually increase firm value.
3. Identify 3 principal advantages of stock repurchases by a firm.
4. Identify 3 principal disadvantages of stock repurchases by a firm.

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