Which of the following statements about stock splits is correct?

a$.$ Stock splits have no effect on the per$-$share par value of the stock.

b$.$ Stock splits do not affect a firm's financial statements.

c$.$ All else equal, a stock split generally leads to an increase in the total dividends paid by a company when the split occurs.

d$.$ A company generally initiates a stock split to decrease the proportion of common stock contained in its capital structure.

e$.$ Stock splits should have no effect on a firm's market value.

Short Answer:

Stock Dividends: Please describe the process that a publicly traded company goes through for the disbursements of their dividends as discussed in class. What are the two different types of dividends that they offer?