Which of the Following Statements About Stock Splits Is Correct

Multiple Choice

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.