If the Board of Directors Approves a Two for One

question 127

Multiple Choice

If the board of directors approves a two for one stock split, an investor who owns 200 shares before the split owns ____________ shares after the split.

• A)75
• B)200
• C)225
• D)400
• E)450

---

Definitions:

Semiannual Coupon

Interest payments made to bond investors every six months as part of the bond's fixed-income return.

Bond Rating

An evaluation provided by a credit rating agency regarding the creditworthiness of a bond issuer, affecting the interest rates and investment appeal of its bonds.

Secured Debt

A debt that is backed by collateral, providing the lender with assurance that the loan can be recovered if defaulted.

Unsecured Debt

A type of debt that is not backed by collateral, making it riskier for lenders and often resulting in higher interest rates for borrowers.