Question: If a firm executed a 3-for-1 stock split, you would expect that the value of an investment in the firm should increase because having 3
If a firm executed a 3-for-1 stock split, you would expect that the value of
| an investment in the firm should increase because having 3 stocks is clearly better than 1. | ||
| each new stock should be approximately 3 times the value of the original stock | ||
| each new stock should be approximately equal to the value of the original stock | ||
| each new stock should be approximately one-third of the value of the original stock | ||
| all of the other responses would be essentially equally probable outcomes |
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