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Modern Homes Just Declared a 4-For-3 Stock Split

question 30

Multiple Choice

Modern Homes just declared a 4-for-3 stock split.Which of the following occurred as a result of this split?
I.Number of shares outstanding increased by one-third
II.Number of shares outstanding decreased by one-fourth
III.Price per share increased by one-third
IV.Price per share decreased by one-fourth


Definitions:

Perfect Competition

A market structure characterized by many buyers and sellers, identical products, and free entry and exit, leading to efficient outcomes.

Price Discrimination

A pricing approach in which the same provider sells identical or nearly identical products or services for varying prices across different markets.

Monopolists

Individuals or firms that are the sole providers of a unique product or service in a market, with the power to control prices and exclude competitors.

Price Discrimination

A pricing strategy that charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to.

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