Exhibit 20-7 ​ Refer to Exhibit 20-7. for Graph (3), If the Price

question 118

Multiple Choice

Exhibit 20-7 ​

Refer to Exhibit 20-7. For graph (3) , if the price of Y is $200, the price of X is

• A)$50.
• B)$40.
• C)$30.
• D)$25.
• E)$15.

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Definitions:

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which in turn reduces the price per share, making the stock more accessible to investors.

Basic Earnings Per Share

A measure of a company's profitability that shows how much of its profits are allocated to each share of common stock.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains unchanged.

Basic Earnings Per Share

A calculation that measures the profitability available to a company's common shareholders, dividing net income by the number of common shares outstanding.