You Currently Own 200 Shares of Stock Valued at $6

question 44

Multiple Choice

You currently own 200 shares of stock valued at $6 per share.If the firm declares a 1-for-4 reverse stock dividend you will own ____ shares valued at ___ per share.

• A) 800; $6
• B) 800; $1.50
• C) 50; $6
• D) 50; $24

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Definitions:

Target Cost

A cost management approach in which the selling price and desired profit of a product or service determine its allowable cost.

Current Cost

Current Cost is the cost that would be incurred to replace an asset or resource at its present value, reflecting its current market price rather than its historical cost.

Target Costing

A pricing strategy where a product’s selling price is determined first based on market conditions, and then the manufacturing cost is managed to ensure profitability.

Life Cycle Cost

Encompasses all costs associated with a product or asset over its entire life, from acquisition through disposal.