Which of the following statements concerning a two-for-one stock split is true?

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Next Question:
Required: Give journal entries and prepare balance sheet.?
Posted by:
Waheed Nasir
16-August-2016

a. The number of shares outstanding will decrease.

b. The market price of the stock would be expected to increase.

c. The company’s equity will increase.

d. No journal entry would be necessary.

Project Finance Cash Flow Forecasting Financial Reporting Financial Systems Feasibility Studies

Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/06/08

Upvote (2) Views (3) Followers (3) Answers (3) Report Question

Write an Answer
Register now or log in to answer.

3 Answers

by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes Option a is the right answer.

Downvote Reply () Report

by Shazia Anees , Assistant Manager Finance , Arham Trading Company

Option a. ====================

Downvote Reply () Report

by Zehab Osman , Accountant , Aldar Consultancy Co.

a. The number of shares outstanding will decrease.

Downvote Reply () Report

Popular Searches

Sales Executive Jobs Engineers Jobs Engineering Technicians Jobs Accountant Jobs Driver Jobs

Write Your Answer

More Questions Like This

If all convertible bonds are converted, the company’s debt-capital ratio is closest to: A. 42.5%. B. 44.4%. C. 80.0%.
Top Answer: <p>Debt/Equity =1.25; Equity = $4,000,000</p> <p>Debt =1.25 x $4,000,000 = $5,000,000&l ... See More

Answers (7)
On January 2, Year 1, XYZ Co. purchased as a long-term investment 10,000 shares of Mill Corp.’s common stock for $40 a share.
Top Answer: Answer: D. $40,000 The Market Prince per share less the Selling price per share multiply by the numbe ... See More

Answers (3)
Johnstone Company owns 10,000 shares of Breva Corporation’s stock; Breva currently has 40,000 shares outstanding. During the year,
Top Answer: Memorandum/Article of Association are important legal documents for any corporation. What's their importa ... See More

Answers (5)
What is Cash Flow Statement Show a Company's Stability?
Top Answer: statement of cash flows shows the entity’s ability togenerate positive future net cash flows (liquidity), ... See More

Answers (57)

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.