Toombs Media Corp

question 44

Multiple Choice

Toombs Media Corp.recently completed a 3-for-1 stock split.Prior to the split,its stock sold for $90 per share.The firm's total market value was unchanged by the split.Other things held constant,what is the best estimate of the stock's post-split price?

• A)$30.00
• B)$31.50
• C)$33.08
• D)$34.73
• E)$36.47

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Definitions:

Accounts Receivable

Amounts due to a company from its customers for goods or services delivered on credit.

Ownership Equity

The remaining interest in the assets of a business after all debts have been subtracted, signifying the ownership stake.

Revaluation Of Land

The process of adjusting the book value of land to reflect its current market value, resulting in a change in the asset's valuation on the balance sheet.

Market Value

The price at which assets or services are currently being exchanged in the marketplace.