Grullon Co

question 21

Multiple Choice

Grullon Co.is considering a 7-for-3 stock split.The current stock price is $75.00 per share, and the firm believes that its total market value would increase by 5% as a result of the improved liquidity that it thinks would follow the split.What is the stock's expected price following the split?

• A)$32.06
• B)$33.75
• C)$35.44
• D)$37.21
• E)$39.07

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Definitions:

Reality Principle

A psychoanalytic concept where the ego seeks to satisfy the id’s desires in realistic and socially appropriate ways.

Primary-process Thought

A mode of thinking primarily in the unconscious mind involving the fulfillment of wishes and desires, often irrational and without logical coherence.

Secondary-process Thought

describes the rational, conscious thought processes rooted in logic, reality, and practicality, as distinguished from primary-process thought which is more about instinctual needs and desires.

False Memories

Memories that feel real but are actually constructions or distortions of reality, often influenced by external factors.