Which of the Following Statements Is Correct About Investors in Ajax

question 70

Multiple Choice

Which of the following statements is correct about investors in Ajax Industries, which has just announced a three-for-one stock split?

• A)investors will triple their wealth after the split
• B)investors' wealth will fall by two-thirds after the split
• C)%age of ownership increases for the investors
• D)earnings per share will fall by two-thirds after the split

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Definitions:

Welfare Capitalism

An economic system that combines a mostly market-based economy with extensive social welfare programs.

Paternalistic Nature

An approach or attitude in management in which an entity controls the needs of people in a manner similar to a father's relationship with his children, often by providing for them without giving them rights or responsibilities.

Employee Voice

The means by which workers express their opinions, grievances, and suggestions regarding workplace policies and practices.

Steel Industry

A sector of the economy focused on the production, processing, and sale of steel and steel products.