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What is the effect of the stock split

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Question 1: Sabie Inc. has 100,000 authorized shares of common stock, 2,000 shares issued and 1,800 outstanding. It has decided to declare a 2-for-1 stock split when the average cost per share is $10. What is the effect of this stock split?

a. Stock outstanding increases to 3,600

b. Stock issued is unchanged

c. Stockholder's equity decreases by $20,000

d. Stockholder's equity increases by $18,000

Reference no: EM132504645

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