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A company issues 100,000 shares at $50 per share. It has a debt-equity ratio of 2:1. If the company announces a 3-for-1 stock split, what
A company issues 100,000 shares at $50 per share. It has a debt-equity ratio of 2:1. If the company announces a 3-for-1 stock split, what will be the result??
1. ?The total stockholders equity and the debt-equity ratio will decrease.
?2. The total stockholders equity will decrease and the debt-equity ratio will remain unchanged.
?3. The total stockholders equity and the debt-equity ratio will remain unchanged.
?4. The total stockholders equity will increase and the debt-equity ratio will decrease.
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