Keys Financial Has Done Extremely Well in Recent Years,and Its

question 32

Multiple Choice

Keys Financial has done extremely well in recent years,and its stock now sells for $175 per share.Management wants to get the price down to a more typical level,which it thinks is $25 per share.What stock split would be required to get to this price,assuming the transaction has no effect on the total market value? Put another way,how many new shares should be given per one old share?

• A)5
• B)6
• C)7
• D)8

---

Definitions:

Communication Transparency

The practice of openly and honestly sharing information, ensuring clarity and accessibility to all relevant parties.

Financial Information

Refers to data regarding the financial status, operations, and performance of an organization, including income, expenses, profits, and losses.

Physical Distractions

Interruptions originating from the physical environment that can impede focus and productivity.

Information Overload

A state in which an individual or system is overwhelmed by the amount of information to process, leading to difficulty in decision-making or focusing.