A 2-For-1 Stock Split

Multiple Choice

A 2-for-1 stock split:

A) Is accounted for in the same way as a 100% stock dividend.
B) Increases the number of outstanding shares of common stock,but par value per share remains the same as before the split.
C) Is recorded by transferring the par value of additional shares from retained earnings to the common stock account.
D) Should logically cause the market price per share to drop by approximately 50%.