A Stock Is Currently Selling for $40 a Share

question 51

Multiple Choice

A stock is currently selling for $40 a share. If the firm declares a 3-for-2 stock dividend there will be:

• A) two-thirds as many shares outstanding priced at $60 each.
• B) three times as many shares outstanding priced at $26.67 each.
• C) 50% more shares outstanding priced at $26.67 each.
• D)one-and-one-half times as many shares outstanding price at $60 each.

Analyze the cost effectiveness of process configuration options for different levels of output.

Determine the most cost-effective process configuration for given levels of demand.

Evaluate the financial implications of process changes on a firm's profitability.

Understand the differences between process-focused shops and repetitive manufacturing.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product demanded.

Computer Software

Programs and operating information used by a computer to perform specific tasks or functions.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level.