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