Urguhart Has Just Declared a 4 for 3 Stock Split

question 30

Multiple Choice

Urguhart has just declared a 4 for 3 stock split. If the pre-split price of common stock was $54 a share, what do you expect the post-split price will be?

• A) $72.00
• B) $36.18
• C) $42.23
• D) $40.50

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Definitions:

Productivity

The effectiveness in producing outcomes or results; can refer to the rate at which work is completed or the efficiency of resource use.

Output

The total amount of goods or services produced by a firm, industry, or economy within a specific period.

MRP Schedule

A document or plan that outlines the marginal revenue product of an input, showing how changes in quantity of the input affect revenue generated.

Perfect Competitor

An individual or company that cannot influence the market price because the market is saturated with similar products, acting within a perfectly competitive market.