A share split will cause changes in the dollar value of which of the following?
A)The par value of the share
B)The book value of common equity
C)The per share price of the share
D)A and C, but not B

Question

Quizplus · Accepted Answer

A share split directly affects the par value of the share and the per share price by increasing the number of shares outstanding while keeping the total value of shares the same, thus reducing the price per share. It does not affect the book value of common equity, which remains constant.

A Share Split Will Cause Changes in the Dollar Value