A One-For-Four Reverse Stock Split Will

question 65

Multiple Choice

A one-for-four reverse stock split will:

• A)increase the par value by 25 percent.
• B)increase the number of shares outstanding by 400 percent.
• C)increase the market value but not affect the par value per share.
• D)increase a $1 par value to $4.
• E)increase a $1 par value to $5.

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Definitions:

Direct Labor Hours

Measures the total hours worked by employees directly involved in the production process, used for calculating labor costs and efficiency.

Machine Hours

A measure of the amount of time a machine is operated, used to allocate machine costs to products or job orders.

Single Plantwide Rate

A method of allocating manufacturing overhead to products using one uniform overhead rate throughout the entire plant or factory.

Product B

A generic term used to refer to a particular product or category of products being discussed or analyzed.