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:

Limit Responsibility

The act of defining or restricting the amount of duty and accountability assigned to a person or organization.

Apologize

To express regret for an offense or fault.

Delivering Bad News

The process of conveying unfavorable or disappointing information to individuals in a sensitive and thoughtful manner.

Recommendation

An advice or suggestion given by someone with knowledge or expertise on a certain matter.