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Stock splits can be used to: adjust the market price of a stock such that it falls within a preferred trading range. decrease the excess

Stock splits can be used to:

adjust the market price of a stock such that it falls within a preferred trading range.

decrease the excess cash held by a firm thereby lowering agency costs.

increase both the number of shares outstanding and the market price per share.

increase the total equity of a firm.

adjust the debt-equity ratio.

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