Igor Corp Declared a Two-For-One Stock Split

question 52

Multiple Choice

Igor Corp declared a two-for-one stock split. Tina Sother owned 500 shares of Igor that were trading for $20 each before the split. Which of the following is true?

• A) The total market value of Tina's shares will double.
• B) The market price per share will drop by 50%.
• C) The market price per share will increase by 100%.
• D) The number of shares Tina owns will increase by 50%.

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Definitions:

Interest Revenue

Earnings received from investments in various financial instruments, including savings accounts, bonds, and loans, where interest is paid to the investor.

Advance

A payment made beforehand, often as part of a contractual agreement or as a loan that expects repayment under specific terms.

Interest Expense

The cost incurred by an entity for borrowed funds, which is reported on the income statement.

Pre-Acquisition Dividend

Dividends declared by a subsidiary prior to being acquired or controlled by the parent company.