Which of the following statements is not true about a 3-for-1 stock split? a. Total stockholders equity

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Which of the following statements is not true about a 3-for-1 stock split?

a. Total stockholders’ equity increases.

b. A stockholder with 10 shares before the split owns 30 shares after the split.

c. Retained Earnings remains the same.

d. The market price of each share of stock will decrease.

e. Par value is reduced to one-third of what it was before the split.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For  answer-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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