The Meat Market Has 16,000 Shares of Stock Outstanding at a Price

question 3

Multiple Choice

The Meat Market has 16,000 shares of stock outstanding at a price per share of $7.What will be the price per share if the firm declares a 3-for-7 reverse stock split?

• A)$11.80
• B)$4.50
• C)$3.00
• D)$15.00
• E)$16.33

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Definitions:

Mistrust

The lack of trust or confidence in someone or something, often resulting from negative past experiences or perceptions of unreliability.

Disbelief

A lack of faith or trust in the truth or existence of something.

Smoothing

A technique used in various contexts, such as negotiation or production, to reduce volatility, conflicts, or fluctuations, aiming for a more stable or harmonious state.

Superordinate Goals

Objectives that are important to more than one party and can only be achieved through the cooperation of all parties involved.