Idle Time Gaming Announced a 2 for 1 Common Stock

question 115

Multiple Choice

Idle Time Gaming announced a 2 for 1 common stock split for investors on record.Which of the following will occur?

• A)The stock price will increase to reflect the value of 2 shares for every one share.
• B)Each share will be worth ½ of its previous value,but shareholders total value of Idle Time Gaming will remain the same.
• C)The value of Idle Time common stock will remain the same,for a short period of time,and then experience a guaranteed growth spurt.
• D)The shareholders will sell their shares immediately after the split and take their capital gains,as well as provide others an opportunity to invest in Idle Time Gaming.

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Definitions:

Service Factor

A multiplier used in operational and manufacturing settings to account for potential variability in demand or system overload capacity.

M/M/S

A model used in queueing theory representing a system with multiple servers where arrivals and service times are Poisson distributed and exponentially distributed, respectively.

Average Time

The mean value that represents the central tendency of a set of times, often used to summarize the typical amount of time required for a process.

Utilization Factor

A measure that assesses how effectively a production resource is used, typically comparing actual output to maximum possible output.