If a Corporation Declares a 2-For-1 Stock Split, Which of the Following

Multiple Choice

If a corporation declares a 2-for-1 stock split, which of the following is true?

A) A journal entry is required to show the effect on the stockholders' equity accounts.
B) The stockholders will have a higher proportionate ownership share after the split.
C) The par value will be reduced to half of the pre-split par value.
D) The market price of the stock is expected to increase after the split.