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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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