amandaroo8648 amandaroo8648
  • 07-08-2020
  • Business
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a stock split increases the number of authorized issued and outstanding shares of stock coupled with a proportionate reduction in the

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ewomazinoade ewomazinoade
  • 08-08-2020

Answer:

stock price

earning per share

dividends per share

Explanation:

A stock split is when a company increases the number of its shares outstanding.

for example if a company has 4 million shares outstanding at a price of $20, earning per share is $1 and dividend per share is $0.50. this company announces a 2 for 1 split :

the number of outstanding shares becomes 2 x 4 million = 8 million

stock price becomes = $40 / 2 =$20

earning per share = $1 / 2 = $0.50

dividend per share = $0.5 / 2 = $0.25

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