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Par Value Shareholders’ Equity
A. Decrease Increase
B. Decrease No change
C. Increase Decrease
D. Increase No change
Par value B. Decrease No change : Share holder's equity
B is the correct answer becuase the par value decrease and the equity remain constant.
A stock split results in more outstanding shares at a lower par value per share. The total value of stock outstanding is unchanged
In stock split, one share is split into2 or3....... and so the par value decreases in that proportion. The total equity does not change.
Option (B) is correct.
B. Decrease No change
Par value will decrease and
Equity of stock holders will not change.