Mario's Has 18,000 Shares of Stock Outstanding with a Par

question 280

Multiple Choice

Mario's has 18,000 shares of stock outstanding with a par value of $1.00 per share and a market price of $33 a share. The firm just announced a 5-for-3 stock split. What will the par value of the
Stock be after the split?

• A) $0.40
• B) $0.60
• C) $1.00
• D) $1.30
• E) $1.50

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Definitions:

Informational Influence

A social influence process where an individual conforms to the opinions or behaviors of others because they are seen as a source of accurate information and used to guide one’s own beliefs or actions.

Social Influence

The change in behavior that one person causes in another, consciously or unconsciously, due to the way the influenced person perceives themselves in relation to the influencer, other people, and society.

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire and motivate others through their personal charm and conviction.

Self-Esteem

The perception and evaluation of one's own worth and abilities, often seen as a key component of mental health.