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.

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Definitions:

Purchasing Power

The quantity and quality of goods and services that can be bought with a unit of currency.

Birth Rates

The number of live births per thousand of the population per year, a key demographic indicator.

Developing Countries

are nations with lower levels of socioeconomic development, characterized by lower income, less industrialization, and poorer health and educational statuses.

Economic Security

The condition of having stable income or other resources to support a standard of living now and in the foreseeable future.