Brinkley Resources Stock Has Has Increased Significantly Over the Last

question 35

Multiple Choice

Brinkley Resources stock has has increased significantly over the last five years, selling now for $175 per share Management feels this price is too high for the average investor and wants to get the price down to a more typical level, which it thinks is $25 per share What stock split would be required to get to this price, assuming the transaction has no effect on the total market value? Put another way, how many new shares should be given per one old share?

• A) 6.65
• B) 6.98
• C) 7.00
• D) 7.35
• E) 7.72

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Definitions:

Defect

An imperfection or shortcoming in a product or system that impairs its usability, safety, or functionality.

Uncertified Check

A check that has not been verified or guaranteed by the bank upon which it is drawn, unlike a certified check.

Cash

Cash is a medium of exchange that represents real value and is used for transactions, available either as physical currency or digital form.

Refuse

To decline to accept or allow something; to show unwillingness to do, accept, give, or allow something.