Which of the Following Statements Is Correct About Investors in Ajax

question 70

Multiple Choice

Which of the following statements is correct about investors in Ajax Industries, which has just announced a three-for-one stock split?

• A)investors will triple their wealth after the split
• B)investors' wealth will fall by two-thirds after the split
• C)%age of ownership increases for the investors
• D)earnings per share will fall by two-thirds after the split

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Definitions:

Exchange Rate

The rate at which one currency can be exchanged for another currency, affecting international trade and investments.

Canadian Dollars

The official currency of Canada, represented by the code CAD in the foreign exchange market.

U.S. Dollars

The official currency of the United States, used as a standard monetary unit.

Foreign Exchange Rate

The worth of one currency in relation to another for conversion purposes, establishing the rate at which one currency can be exchanged for another.