If a job evaluation committee uses the ranking method, then the pay grade consists of all jobs that fall within two or three ranks

In a recent presentation, Doug Pearce made two statements about dividends: Statement 1: "A stock dividend will increase share price, all other things being equal." Statement 2: "One practical concern with a stock split is that it will reduce the company's price-to-earnings ratio." Are Pearce's two statements about the effects of the stock dividend and stock split correct?

A. No for both statements. B. Yes for Statement 1 and No for Statement 2. C. No for Statement 1 and Yes for Statement 2

Why would a corporation issue bonds payable instead of issuing stock?

A) Debt is a less expensive source of capital than stock. B) Borrowing by issuing bonds payable carries no risk to the company. C) Debt affects the percentage of ownership of the corporation by the stockholders. D) Debt does not have to be shown on the balance sheet.