Grullon Co

question 20

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

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Definitions:

Cash Discount

A deduction from the invoice price offered by the seller to the buyer for prompt payment of their bill.

Discount Date

The specified date by which payment of a bill or invoice is required to avail a discount for early payment.

Delivery Charge

A fee charged for the delivery of goods or services to a recipient's location.

Cash Discount

A reduction in the price of an item or service offered to a buyer for immediate payment or within a predefined time.