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Intermediate Accounting: Reporting...
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Intermediate Accounting: Reporting...
What is the most likely effect of a stock split on the par value per share and the number of shares outstanding?
Explain the effect of a stock split on the par value per share and the number of shares outstanding.
Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.
a) Stock splits will decrease the par value per share and increases the number of shares outstanding. Thus, this option is correct.
b) Stock splits will decrease the par value per share and increases the number of shares outstanding...
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