- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 8. Equity Valuation: Concepts and Basic Tools
- Subject 2. Background for the Dividend Discount Model
CFA Practice Question
SuperKleen Mops plans to split its stock two-for-one. Which of the following most likely will NOT occur? A. price per share will fall by half.
B. the number of shares owned by each individual investor will double.
C. par value per share will be reduced by half.
D. total shareholders' equity will fall by half.
E. the number of shares outstanding will double.
Correct Answer: D
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