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Financial Has Done Extremely Well in Recent Years, and Its

question 18

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Financial has done extremely well in recent years, and its stock now sells for $175 per share.Management wants to get the price down to a more typical level, which it thinks is $25 per share.What stock split would be required to get to this price, assuming the transaction has no effect on the total market value? Put another way, how many new shares should be given per one old share?

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Definitions:

Use Of Force Theory

The study and principles guiding when and how much force can be used in situations such as law enforcement or military engagements.

Angry Aggression

A form of aggression that is driven by anger and is aimed at causing harm or injury.

Slippery Slope

An argument or reasoning that suggests taking a minor action will lead to major and increasingly negative consequences, often without direct evidence.

Gratuities

Voluntary payments given for services received, often seen as a token of appreciation.

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