Which of the following is true (could be more than one): Stock splits...

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Accounting

  1. Which of the following is true (could be more than one):

    1. Stock splits change the divisor in a price-weighted index but do not result in any net change in the divisor of a value-weighted index

    2. At year-end a firm has assets of $100 and debts due of $120. In this situation, the stockholders must pay an additional $20 out of their own pocket

    3. A seasoned equity offering occurs when an issuer that already has equity publicly trading issues new shares to the public

    4. Dow Jones Industrial Average is value-weighted

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