Multiple Choice
A company's current equity value is $2 million. If the company splits the stock 2 for 1, the equityvalue will
A) fall to $1 million.
B) increase to $4 million.
C) increase to $4 million for about a week and fall back to normal levels.
D) remain unchanged at $2 million.
Correct Answer:
Verified
Correct Answer:
Verified
Q33: Mr. R. owns 20,000 shares of ABC
Q37: In Canada, capital gains are taxed more
Q39: A firm's 1,000,000 shares have a market
Q40: A firm has current aftertax earnings of
Q42: When common stock is repurchased and retired,
Q43: The capital impairment restrictions are established to<br>A)
Q47: Because retained earnings are a form of
Q71: Reverse stock splits are initiated when a
Q73: Purchasers of a stock selling ex dividend
Q78: Since lenders are generally reluctant to make