Global Inc

question 94

Multiple Choice

Global Inc.'s shares are selling for $36 per share.Determine the new price per share, if the company a 4 for 6 reverse stock split.

• A)$54
• B)$44
• C)$34
• D)$24

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Definitions:

Avoidable Cost

A cost that can be eliminated (in whole or in part) by choosing one alternative over another in a decision. This term is synonymous with relevant cost and differential cost.

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent or salaries.

Contribution Margin

This is the amount remaining from sales revenue after all variable expenses have been deducted.

Financial Reporting

The process of providing financial information to company stakeholders to help in making business decisions.