Della's Pools Has 36,000 Shares of Stock Outstanding with a Par

question 30

Multiple Choice

Della's Pools has 36,000 shares of stock outstanding with a par value of $1 per share and a market price of $38 a share. The company just announced a stock split of four-for-three. How many shares of stock will be outstanding after the split?

• A) 27,000
• B) 14,400
• C) 12,000
• D) 36,000
• E) 48,000

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Definitions:

Demand

The volume of goods or services that individuals are prepared and financially able to acquire at varying price points during a certain time span.

Perfectly Competitive Labor Market

A theoretical market where numerous employers and employees interact, with no single entity able to influence wages or working conditions.

Wages

The compensation received by employees for their labor, typically expressed as an hourly rate or annual salary.

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services.