Mercury Homes Just Declared a 4-For-3 Stock Split

question 1

Multiple Choice

Mercury Homes just declared a 4-for-3 stock split.Which of the following occurred as a result of this split?
I.Number of shares outstanding increased by one-third
II.Number of shares outstanding decreased by one-fourth
III.Price per share increased by one-third
IV.Price per share decreased by one-fourth

• A)I only
• B)I and III only
• C)I and IV only
• D)II and III only
• E)II and IV only

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Definitions:

Daniel Goleman

An author and psychologist known for his work on emotional intelligence, including its importance in leadership, education, and personal development.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.

Howard Gardner

An American developmental psychologist best known for his theory of multiple intelligences, which suggests people have different kinds of intelligences.

Intelligence

The ability to learn, understand, and make judgments or have opinions that are based on reason.