Which of the following occurs when the board of directors declares a 2- for- 1 share split on 20 000 issued shares of $15 ordinary shares?
A) The market value of the share remains the same.
B) Issued shares decrease to 10 000.
C) The market value of the share increases to $30 per share.
D) Issued shares increase to 40 000.
Correct Answer:
Verified
Q16: A share split is an increase in
Q17: Share dividends are distributed to shareholders in
Q18: The declaration of a share dividend creates
Q19: Share dividends have no effect on assets
Q20: Which of the following would have the
Q22: On 1 January 2013, Parquet Sales issued
Q23: Which of the following does NOT require
Q25: ABC has 45 000 shares of $10
Q26: Petra Sales Company has issued 200 000
Q35: A share buy-back requires a credit to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents