Red's Electronics Has a Balance Sheet with Equity Account Values

question 75

Multiple Choice

Red's Electronics has a balance sheet with equity account values of: common stock ($1 par) of $70,500; capital surplus of $141,600; and retained earnings of $208,300.How many shares will be outstanding if the firm declares a 2-for-9 reverse stock split?

• A)5,833 shares
• B)15,667 shares
• C)18,000 shares
• D)305,750 shares
• E)317,250 shares

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Definitions:

Secretin

Secretin is a hormone produced by the S cells of the duodenum that stimulates the pancreas to release bicarbonate-rich fluids, aiding in the neutralization of stomach acid in the small intestine.

Small Intestine

A part of the gastrointestinal tract between the stomach and the large intestine that is responsible for most of the digestion and absorption of nutrients.

Cholecystokinin

A hormone released by the small intestine in response to the ingestion of fats, playing a critical role in digestion by stimulating the gallbladder to release bile.

Glossopharyngeal Nerve

The ninth cranial nerve, responsible for sensory and motor functions in the throat, including taste sensation and swallowing.