In a Three for Two Stock Split for a Company

question 31

Multiple Choice

In a three for two stock split for a company that previously had 1 million shares outstanding selling at $100 per share and a total market value of $100 million, which of the following is true:

• A)the number of outstanding shares will drop to 666,666, and the stock price will increase to $150.
• B)the number of outstanding shares will increase to 1.5 million, and the stock price will drop to $66.67.
• C)the number of outstanding shares will increase to 1.5 million, and the stock price will rise to $133.33.
• D)the market value of the firm will increase.

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Definitions:

Dull His Feelings

"Dull His Feelings" suggests an attempt to numb or suppress one's emotional responses, often through the use of substances or other coping mechanisms.

Schedule of Reinforcement

A rule or plan for determining the timing and frequency of reinforcement (rewards or punishments) in order to modify behavior.

Fixed Interval

A reinforcement schedule that rewards a response only after a specified time has elapsed, leading to a pattern of response following the reinforcement.

Variable Ratio

In operant conditioning, a reinforcement schedule that rewards a response after an unpredictable number of responses, making it very effective for maintaining strong and steady response rates.