You Own Stock in a fiRm That Has 1

question 337

Multiple Choice

You own stock in a firm that has 1.25 million shares outstanding. The current stock price is $13.50 per share. If the company does a 3-for-1 stock split, what would you expect the stock price to be
After the split?

• A) $3.67
• B) $4.33
• C) $4.50
• D) $13.50
• E) $40.50

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Definitions:

Public Place

Any area that is open and accessible to people, such as parks, streets, public squares, and government buildings.

Uniform Commercial Code

The Uniform Commercial Code (UCC) is a comprehensive set of laws that governs all commercial transactions in the United States, intended to standardize and simplify interactions across state lines.

Sale of Services

A sale of services occurs when a transaction is made in which the seller provides a service, such as consultation or maintenance, to the buyer in exchange for payment.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law among the states.