Edie's Has 14,500 Shares of Stock Outstanding with a Par

question 22

Multiple Choice

Edie's has 14,500 shares of stock outstanding with a par value of $1 per share and a market value of $5.80 a share.What type of stock split would be best if the stock's proper trading range centers on $16 a share?

• A)Stock split of eight-for-three
• B)Stock split of eleven-for-four
• C)Reverse stock split of three-for-one
• D)Reverse stock split of three-for-eight
• E)Reverse stock split of four-for-eleven

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Definitions:

Consultation Rights

Legal rights or agreements that require employers to discuss and seek input from employees or their representatives on certain workplace issues.

German Companies

Companies based in Germany, known for their participative management style and codetermination in corporate governance, allowing workers to have a say in company decisions.

Peak-Level Bargaining

Collective bargaining that occurs at the top level of negotiations, involving senior representatives from unions and employers or governments.

Union Density Rate

The proportion of workers in a given sector or country who are members of unions, indicating the level of unionization.