Now Assume That AJC Is Considering Changing from Its Original

question 1

Multiple Choice

Now assume that AJC is considering changing from its original capital structure to a new capital structure with 50 percent debt and 50 percent equity. If it makes this change, its resulting market value would be $820,000. What would be its new stock price per share?

• A) $58
• B) $59
• C) $60
• D) $61
• E) $62

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Definitions:

Communication

The process of conveying information and ideas from one individual or group to another through spoken words, written text, or other mediums.

Deindividuation

A psychological state in which an individual loses self-awareness and a sense of individuality, often resulting in disinhibited behavior.

Social Facilitation

The improvement in performance observed when an individual performs a task in the presence of others, compared to when they are alone.

Social Loafing

The occurrence in which people put in less effort towards reaching a goal when they are part of a group compared to when they are working solo.