What is the monetary impact on a shareholder if a company declares a 3-for-1 stock split? The shareholder's investment is tripled based on the current price of the stock. The shareholder's investment is reduced to one-third of the current price of the stock. The shareholder's investment is tripled based on the original purchase price of the stock. There is no monetary impact on the shareholder's investment.
What is the monetary impact on a shareholder if a company declares a 3-for-1 stock split? The shareholder's investment is tripled based on the current price of the stock. The shareholder's investment is reduced to one-third of the current price of the stock. The shareholder's investment is tripled based on the original purchase price of the stock. There is no monetary impact on the shareholder's investment.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 4MC
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