When the Board of Directors Approves a Two for One

question 17

Multiple Choice

When the board of directors approves a two for one stock split, the price for each share of stock

• A)remains unchanged.
• B)increases in value.
• C)decreases in value.
• D)is guaranteed to go up within a short period of time.
• E)always drops to half of its former value.

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Definitions:

University

A higher learning and research establishment that grants various academic qualifications across multiple fields of study.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to provide, typically upward sloping indicating that higher wages incentivize more labor.

Marginal Cost

The financial increase required to produce one more unit of a good or service.

Weekly Wage

The total amount of money or compensation paid to an employee by an employer for work performed over the course of a week.