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Stock split

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Stock split

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Increases in the stock of capital will cause which of the following?

The demand of labor increases.

The demand of labor decreases.

Selected answer No change in the demand of labor.

First increase then decrease the demand of labor

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Yes, credits increases the common stock because common stock has credit as a normal balance of account.

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Stock repurchases increases the debt equity ratio towards higher debt.

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Common stock has a credit normal balance so with debit it reduces while with credit it increases.

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