In a Three for Two Stock Split for a Company

question 31

Multiple Choice

In a three for two stock split for a company that previously had 1 million shares outstanding selling at $100 per share and a total market value of $100 million, which of the following is true:

• A)the number of outstanding shares will drop to 666,666, and the stock price will increase to $150.
• B)the number of outstanding shares will increase to 1.5 million, and the stock price will drop to $66.67.
• C)the number of outstanding shares will increase to 1.5 million, and the stock price will rise to $133.33.
• D)the market value of the firm will increase.

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Definitions:

Sexual Prowess

An individual's skill or expertise in matters of sexual activity and intimacy.

Assertiveness

The quality of being self-assured and confident without being aggressive.

Treaty of Guadalupe Hidalgo

The 1848 agreement that ended the Mexican-American War and resulted in the U.S. acquiring territories including present-day California, Arizona, New Mexico, and parts of Colorado, Nevada, Utah, and Wyoming.

Annexation

The act of incorporating a land area into another entity, such as a country or city, often involving a change in political control.