Which One of the Following Statements Is Correct About Investors

question 28

Multiple Choice

Which one 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) Percentage of ownership increases for the investors.
• D)Earnings per share will fall by two-thirds after the split.

---

Definitions:

Repercussions

The consequences or effects that follow a particular action or decision, often within a legal or regulatory context.

Filing Procedures

The official steps required to properly submit legal documents to a court or governmental agency.

Practice of Law

The Practice of Law involves advising clients, representing them in legal matters, and conducting lawsuits to secure their legal rights and interests.

Large and Small Firms

Refers to the size difference between law firms, affecting their structure, client base, and area of specialization.