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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
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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