Question

When a company declares a 2-for-1 stock split, _____. Group of answer choices there is no effect on total stockholders' equity the price of each share will be one third of what it was before the stock split a shareholder who previously held 100 shares will have 300 shares after the split stockholders' equity is doubled

Answer 1

Answer:

there is no effect on total stockholders

Explanation:

A 2-for-1 stock split is when a shareholder would be issued an additional share for each stock owned. The stockholders who previously had 100 shares before the split would have 200.

Earnings per share would decline by half leaving equity market value unchanged.

I hope my answer helps you