Financial Has Done Extremely Well in Recent Years, and Its

question 18

Multiple Choice

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?

• A)6.65
• B)6.98
• C)7.00
• D)7.35
• E)7.72

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Definitions:

Renal Corpuscle

The initial blood-filtering component of a nephron in the kidney, consisting of the Bowman's capsule and glomerulus, where blood plasma is filtered.

Renal Papilla

The tip of the renal pyramid that projects into the renal calyx, through which urine flows into the ureter.

Adipose Capsule

The adipose capsule is a layer of fat surrounding certain organs, such as the kidneys, providing protection and supporting their structure.

Renal Capsule

A tough fibrous layer surrounding the kidney and providing it with structural support.