The Stock in Your Portfolio Was Selling for $40 Per

question 8

Multiple Choice

The stock in your portfolio was selling for $40 per share yesterday, but has today declared a three for two stock split.Which of the following statements seems to be true?

• A)there will be two-thirds as many shares outstanding, and they will sell for $60.00 each.
• B)there will be four times as many shares outstanding, and they will sell for $160.00 each.
• C)there will be 50% more shares outstanding, and they will sell for $26.67 each.
• D)there will be one-and-one-half times as many shares outstanding, and they will sell for $60.00 each.

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Definitions:

GDP Deflator

An economic metric that adjusts the nominal GDP figure to account for changes in price levels, providing a more accurate picture of an economy's size and health over time.

GDP Deflator

A way to measure the cost of all newly made, domestically originated, final goods and services in a country's economic framework.

Inflation Rate

The velocity at which the entirety of goods and services' prices amplifies, draining the monetary capacity to acquire.

GDP Per Person

Gross Domestic Product divided by the population of the country, a measure of the economic output per capita.