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Prin of finance

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Which of the following statements are true of a “two-for-one stock split?”:

1. It may signal higher future earnings
2. By creating more shares at a lower price, marketability may be improved
3. It increases the “Equity Section” of a company’s Balance Sheet

a. 1 and 2
b. 1 and 3
c. 2 and 3
d. All three are true

  • Prin of finance -

    Equity is not changed.

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