Question: If a stock has a 2 - for - 1 split: Multiple Choice the value of the stock is guaranteed to increase. the value of

If a stock has a 2-for-1 split:
Multiple Choice
the value of the stock is guaranteed to increase.
the value of the stock is guaranteed to decrease.
total market capitalization increases.
total market capitalization decreases.
total market capitalization does not change.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Robinson's has 34,000 shares of stock outstanding with a par value of $1 per share and a market price of $50 a share. The balance sheet shows $34,000 in the common stock account, $455,000 in the paid...

Q:

Robinson's has 30,000 shares of stock outstanding with a par value of $1 per share and a market price of $44 a share. The balance sheet shows $30,000 in the common stock account, $440,000 in the paid...

Q:

Robinson's has 44,000 shares of stock outstanding with a par value of $1 per share and a market price of $48 a share. The balance sheet shows $44,000 in the common stock account, $505,000 in the...

Q:

Problem 1: The stockholders' equity section of the balance sheet of Benson Corporation (with certain details omitted) appears below: Answer the following questions based on the stockholders' equity...

Q:

2: Stock splits (15 points) Stockholders' Equity: 8% cumulative preferred stock, $100 par, 50,000 shares authorized; 15,000 shares issued.... Common stock, $6 par, 1,500,000 shares authorized,...

Q:

1. You purchase one IBM July 120 put contract for a premium of $5 (per share). You hold the option until the expiration date when IBM stock sells for $123 per share. You will realize a ______ on the...

Q:

Jackson Corporation had the following net income in years 1-3: Year 1 = $10,000 Year 2 = $25,000 Year 3 = $65,000 There are 100,000 shares of 6%, $5 par value preferred stock and 50,000 shares of $2...

Q:

Compute the effect of a 2 to 1 split on the par value and number shares of common stock. (5 points) Compute the effect of a 4 to 1 split on the par value and number shares of common stock. (5 points)...

Q:

Ma'am, Can you please assist with the following questions: B-15.05 B-15.06 B-15.07 B-16.01 B-16.09 B-16.11 B-17.04 B-14.07 x Stock dividends and splits Magic Blade's stock has risen rapidly to $50...

Q:

Hi please solve this questions and please do not paste the answers on the thread.Thank you FIN534 Week 8 Scenario Script: An Overview of cash dividends; Procedures for Cash Dividends; and The pros...

Q:

Choose a Lebanese Company, and answer the following questions: Question 1: Whats next? (Ask yourself if every marketing effort highlights the USP. If it doesnt, dont do it. Or change your messaging...

Q:

While wandering around the halls of North Shore High School after hours, Regina George encounters lots of minions. Suppose minions appear one-at-a-time. You may assume that these encounters are...

Q:

This section shall use EVM to compare the planned versus actual task (hours) and schedule (dates) metrics. Any significant deviation(s) from the planned values shall be documented. Client: Kilowatt...

Q:

Solve B. 6a2-23a +20. a +2 2a2-a-10 2a-5