Consider the following two statements: (1) Buyback can be used by companies to defend against hostile takeovers since they increase the proportion of debt in a firm’s capital structure. (2) After a 3-for-l stock split, a company’s price per share will fall and its number of shares outstanding will rise total value remaining the same.Which of the above statement is correct?

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Consider the following two statements:<br /> (1) Buyback can be used by companies to defend against hostile takeovers since they increase the proportion of debt in a firm’s capital structure.<br /> (2) After a 3-for-l stock split, a company’s price per share will fall and its number of shares outstanding will rise total value remaining the same.<br />Which of the above statement is correct?