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:

Promisee

The party in a contract who is to receive the benefit or performance specified in the agreement.

Promise

A declaration or assurance that one will do something or that a particular thing will happen.

Offer

A proposal by one party to another to enter into a legally binding contract with specific terms.

Offeree

The party to whom the offer is made.