In a 1 for 4 Stock Split, a Share Trading

question 106

Multiple Choice

In a 1 for 4 stock split, a share trading at $10 prior to the split would be trading at_________after the split.

• A) $2
• B) $2.50
• C) $40
• D) $10

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Definitions:

Debt Ratio

A financial ratio that measures the extent of a company’s leverage, calculated by dividing total liabilities by total assets.

Total Debt

The sum of all liabilities, both short and long term, that a company owes.

Cash In Hand

The amount of liquid money or physical currency that a company or individual has readily available.

Bills Receivable

Financial documents representing money owed to a business by its customers that is payable within a short period.