FMS A 18. A stock dividend will Decrease the "capital in excess of par" account B. C Decrease the retalned earnings account D. None of these options are correct 19. A 2-for-1 stock split is declared. In this case, which of the following statements are true? A. The cash account declines B. The common stock account increases C. The retained earnings account decreases D. The par value of the common stock is reduced 20. Management may repurchase shares of Its own stock in the market A. To buy stock that management feels is considerably underpriced B. For employee stock options C. To use in a merger D. All of these options are true 21. The floor price of a convertible bond cannot fall below A. The conversion ratio B. The conversion price C. The conversion premium D. The pure bond value 22. The interest rate on convertibles is generallythe interest rate on similar nonconvertible securities. A. Greater than B. Less than C. The same D. At least twice as