Question
Which of the following statements accurately explains why the board of directors of a company whose financial future contains some uncertainties might issue a 2-for-1
Which of the following statements accurately explains why the board of directors of a company whose financial future contains some uncertainties might issue a 2-for-1 stock split rather than declare a 100% stock dividend? A)A stock split would not reduce the market price per share, whereas a stock dividend would. B)A stock split would reduce the market price per share, whereas a stock dividend would not. C)A stock split would increase total stockholders' equity, whereas a stock dividend would not. D)A stock split would not reduce Retained Earnings, whereas a stock dividend would.
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