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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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What is the monetary impact on a shareholder if a company declares a 3-for-1
stock split?
O 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.
Transcribed Image Text:What is the monetary impact on a shareholder if a company declares a 3-for-1 stock split? O 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.
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