Innovative Technologies Has 46,000 Shares of Stock Outstanding at a Market

question 82

Multiple Choice

Innovative Technologies has 46,000 shares of stock outstanding at a market price of $6 a share.Which one of the following stock splits should the firm declare if it wants to increase the stock price to exactly $16 a share? Ignore any taxes or market imperfections.

• A)5-for-2 stock split
• B)3-for-1 stock split
• C)1-for-3-reverse stock split
• D)2-for-5 reverse stock split
• E)3-for-8 reverse stock split

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Definitions:

Social Power

The ability to influence or control the behavior of others within a social framework, often derived from one's position, resources, or relationships.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.

Social Relation

The interaction between two or more individuals, influencing each other's behaviors and actions within society.

Information Power

The capability to influence others' behavior or decision-making process due to possessing specific knowledge or expertise.