A 3-for-1 common stock split will increase total stockholders' equity but reduce the par or stated value per share of common stock.

Name: A 3-for-1 common stock split will increase total stockholders' equity but reduce the par or stated value per share of common stock.
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Question

Quizplus · Accepted Answer

A 3-for-1 common stock split does not change the total stockholders' equity; it only reduces the par or stated value per share of common stock and increases the number of shares outstanding.

A 3-For-1 Common Stock Split Will Increase Total Stockholders' Equity