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

question 36

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)6.98
• B)7.00
• C)7.35
• D)7.72
• E)8.10

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Definitions:

Regression Plane

The regression plane is a three-dimensional graphical representation used in multiple regression analysis that shows the relationship between two independent variables and one dependent variable.

Squared Horizontal Deviations

The squared differences between each value in a set of values and a chosen fixed point, typically used in the context of variance or standard deviation calculations.

Sample Points

Individual items or observations selected from a population for the purpose of statistical analysis.

Three-variable

Pertaining to equations, models, or analyses that involve three distinct variables or elements.