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Modern Homes Just Declared a 4-For-3 Stock Split

Question 48

Multiple Choice

Modern Homes just declared a 4-for-3 stock split.Which of the following occurred as a result of this split?
I.Number of shares outstanding increased by one-third
II.Number of shares outstanding decreased by one-fourth
III.Price per share increased by one-third
IV.Price per share decreased by one-fourth


A) I only
B) I and III only
C) I and IV only
D) II and III only
E) II and IV only

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