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a company issued 100 000 shares at $50 per share -

A company issued 100 000 shares at $50 per share

Quetion: A company issued 100,000 shares at $50 per share. It has a debt-equity ratio of 2:1. If the company announces a 3-for-1 stock split, what will be the result?

The total stockholders’ equity and the debt-equity ratio will remain unchanged.

The total stockholder’s equity will decrease and the debt-equity ratio will remain unchanged.

The total stockholder’s equity will increase and the debt-equity ratio will decrease.

The total stockholder’s equity and the debt-equity ratio will decrease.

 

 

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