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.

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Definitions:

Affirmation

A positive statement or declaration, often used in the context of legal oaths.

In Pari Delicto

In equal fault.

Illegal Agreement

A contract or agreement that is not enforceable by law because it involves activities that are against the law or public policy.

Voidable

Voidable refers to a legal contract or transaction that is valid and enforceable on the surface but may be declared void by one of the parties due to certain defects or conditions.