A stock split has ________.
A) little effect on a firm's capital structure
B) no effect on a firm's capital structure
C) a measurable effect on a firm's capital structure
D) a detrimental effect on a firm's capital structure

Question

Quizplus · Accepted Answer

A stock split does not change the total value of a company or its capital structure. It only divides the existing shares into smaller ones, therefore, it has no effect on a company's equity or debt structure.

A Stock Split Has ________