State whether a statement is true or false. Then explain why you think the statement true or false.

a. A 2-for-1 stock split will double the market price of the stock and will double the stockholders equity.

b. Purchase of treasury stock would increase earnings per share.

c. Company A has a debt ratio of 0.5 and company B has a debt ratio of 0.75. Considering everything else of the two companies are same, company A is much riskier than company B if recession hits in the market.

d. Market price of a bond and face value of bond will always be the same.