Mid-State BankCorp Recently Declared a 7-For-2 Stock Split

question 12

Multiple Choice

Mid-State BankCorp recently declared a 7-for-2 stock split.Prior to the split,the stock sold for $80 per share.If the firm's total market value is unchanged by the split,what will the stock price be following the split?

• A)$20.63
• B)$21.71
• C)$22.86
• D)$24.00
• E)$25.20

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Definitions:

Chemical Bonds

The attractive forces that hold atoms together in molecules or crystals, forming as a result of sharing or transferring electrons between atoms.

Molecule

The smallest particle of a chemical substance that can exist independently while retaining the chemical properties of the substance.

Atoms

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, and surrounded by electrons.

Ion

An atom or molecule with a net electric charge due to the loss or gain of one or more electrons.