In a Three-For-Two Stock Split for a Company That Previously

question 61

Multiple Choice

In a three-for-two stock split for a company that previously had 1 million shares outstanding selling at $100 per share and a total market value of $100 million, which of the following is true?

• A) The number of outstanding shares will drop to 666,666, and the stock price will increase to $150.
• B) The number of outstanding shares will increase to 1.5 million, and the stock price will drop to $66.67.
• C) The number of outstanding shares will increase to 1.5 million, and the stock price will rise to $133.33.
• D)The market value of the firm will increase by 50%.

Explain the effects of changes in government spending, taxes, and other variables on the aggregate demand and supply curves.

Identify the role of expectations in influencing the aggregate demand and supply curves, particularly through anticipated changes in the price level.

Explain the implications of changes in national income components on GDP using the expenditures approach.

Comprehend the theories behind sticky prices and wages and how they affect the short-run aggregate supply curve.

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Definitions:

Product Price

The amount of money required to purchase a good or service, commonly influenced by costs, demand, and supply factors.

Purely Competitive Seller

A seller in a market characterized by many buyers and sellers, free entry and exit, and a homogeneous product where no single seller can influence market price.

Units of Output

A measure of production or productivity, essentially counting the quantity of goods or services produced.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output.