Brinkley Resources Stock Has Increased Significantly Over the Last Five

question 13

Multiple Choice

Brinkley Resources stock has increased significantly over the last five years, selling now for $175 per share.Management feels this price is too high for the average investor and 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) 6.65
• B) 6.98
• C) 7.00
• D) 7.35
• E) 7.72

---

Definitions:

Regulatory Reach

The extent to which government agencies can enforce rules and regulations governing individuals, businesses, and other entities.

Enumerated Powers

Specific powers granted to Congress as outlined in Article 1, Section 8 of the U.S. Constitution.

Congress

Congress is the bicameral legislature of the federal government in the United States, consisting of two houses: the Senate and the House of Representatives.

Concurrent Powers

Powers that are shared by both the federal and state governments in the United States.