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.

---

Definitions:

Tourist Gift Shops

Retail outlets specializing in the sale of souvenirs and merchandise aimed at visitors and tourists, often featuring items symbolic of the location.

Inventory

The total quantity of goods and materials held in stock by a business, warehouse, or point of sale.

Sales Engineer

A professional role that combines technical knowledge with sales skills to provide advice and support on a range of products.

3S Technologies

A term potentially referring to specific technological approaches, though it lacks a universal definition without further context.