VGG, Inc Declares a 2-For-5 Stock Split

question 78

Multiple Choice

VGG, Inc. declares a 2-for-5 stock split. The stock currently sells for $4 a share. A shareholder who owned 1000 shares of VGG stock prior to the split will now own

• A) 400 shares valued at about $10.00 a share.
• B) 440 shares valued at about $1.60 a share.
• C) 2500 shares valued at about $1.60 a share.
• D) 250 shares valued at about $11.60 a share.

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Definitions:

Health Benefit

Refers to the positive effects on health and well-being provided by certain actions, policies, or products, including medical insurance coverage provided by employers or governments.

Fixed Expense

Costs or expenses that remain constant for a period of time regardless of changes in business activity levels, such as rent or salaries.

Net Assets

The total value of an organization's assets minus its total liabilities, representing the organization's financial health.

Physical Assets

Tangible resources owned by an individual or organization, including equipment, buildings, and land.