Multiple Choice
When a firm announces a two-for-one stock split (in the absence of other new information) ,investors should expect that:
A) earnings per share will fall in half but stock price will remain the same.
B) stock price will fall in half but earnings per share will remain the same.
C) both earnings per share and stock price will remain the same.
D) both earnings per share and stock price will fall by half.
Correct Answer:
Verified
Correct Answer:
Verified
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