Before a Four-For-One Stock Split, the Shares Outstanding Were 7,000

question 86

Multiple Choice

Before a four-for-one stock split, the shares outstanding were 7,000 shares at $12 par. After the split, what was the par value per share and number of shares? (Round your answer to the nearest cent.)

• A) 28,000 shares at $12 per share
• B) 28,000 shares at $3.00 per share
• C) 28,000 shares at $6.00 per share
• D) 7,000 shares at $48 per share

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Definitions:

Outcomes

The results or effects of actions, decisions, or policies, with a broader application beyond purely economic contexts.

Risk Averse

A preference for certainty over uncertainty with regards to outcomes, particularly in the context of financial decisions.

Certain Income

An assured or guaranteed stream of income, usually referring to investments with fixed returns.

Probability

A measure of how likely it is for an event to occur, expressed as a number between 0 and 1, with 1 indicating certainty.