Keys Financial Has Done Extremely Well in Recent Years,and Its

question 36

Multiple Choice

Keys 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)6.98
• B)7.00
• C)7.35
• D)7.72
• E)8.10

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Definitions:

SPIN Approach

A sales strategy that involves asking Situation, Problem, Implication, and Need-payoff questions to understand a prospect's needs and offer solutions.

Product

One of the four main elements of the marketing mix, it is a bundle of tangible and intangible attributes, including packaging, color, and brand, plus the services and even the reputation of the seller.

Strategic Question

A carefully formulated question designed to gather essential information, guide decision-making, or provoke deeper thinking related to strategic goals.

SPIN Approach

A consultative sales technique that stands for Situation, Problem, Implication, Need-payoff, focusing on asking questions to understand customer needs and offering solutions.