A Company's Current Equity Value Is $2 Million

question 38

Multiple Choice

A company's current equity value is $2 million. If the company splits the stock 2 for 1, the equityvalue will

• A) fall to $1 million.
• B) increase to $4 million.
• C) increase to $4 million for about a week and fall back to normal levels.
• D) remain unchanged at $2 million.

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Definitions:

Conscious Experience

The awareness of internal or external existence, encompassing thoughts, feelings, and sensations.

General Bodily Arousal

A state of physical and psychological alertness, typically involving increased heart rate and energy, often as a response to stimuli or stress.

Specific Emotion

A distinct feeling that arises in response to a particular event or circumstance, identifiable by its unique psychological and physiological patterns.

Stanley Schachter

An American psychologist best known for his development of the two-factor theory of emotion, which considers both physiological arousal and cognitive labeling.