Wisniewski Inventions Has 560,000 Shares of Stock Outstanding at a Market

question 43

Multiple Choice

Wisniewski Inventions has 560,000 shares of stock outstanding at a market price of $3.90. If the firm declares a 2-for-7 reverse stock split, the company will have ____ shares outstanding at a market price of:

• A) 160,000; $1.11.
• B) 160,000; $13.65.
• C) 160,000; $27.30.
• D) 1,960,000; $1.11.
• E) 1,960,000; $13.65.

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Definitions:

Basaltic Shield-forming

The process of creating large, gently sloping volcanic mountains through the accumulation of fluid basaltic lava flows.

Welded Tuffs

Volcanic deposits formed from hot ash flows that solidify, with the particles welding together due to the heat.

Andesite

A volcanic rock of intermediate composition, typically found in volcanic arcs associated with subduction zones, characterized by a medium gray or brown color.

Silica Content

The proportion of silicon dioxide (SiO2) in a rock, mineral, or geological sample, influencing its physical properties and behavior.