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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 3,600

b. Stock issued is unchanged

c. Stockholder's equity decreases by 20,000

d. Stockholder's equity increases by 18,000

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Option A. Stock... View the full answer

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