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Foundations of Financial Management Study Set 5
Quiz 18: Dividend Policy and Retained Earnings
A Stock Split Involves a Reduction in the Firm's Retained
Question 65
True False
A stock split involves a reduction in the firm's retained earnings account.
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Q 66
Distributions of 20-25% or greater of outstanding shares are generally to be treated as stock splits.
Q 67
Stock dividends may be utilized to provide information to investors about growing companies.
Q 68
Stock splits are usually utilized to place stock in a lower-price trading range.
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