Use the Information for the Question(s)below

question 2

Multiple Choice

Use the information for the question(s) below.
Luther Industries currently has 5 million shares outstanding and its stock is currently trading at $40 per share.
-Assuming Luther issues a 5:2 stock split,then the number of shares Luther will have outstanding following the split is closest to:

• A)25.0 million.
• B)12.5 million.
• C)2.0 million.
• D)16.0 million.

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Definitions:

Rotor Bars

Metal bars mounted in the rotor of an induction motor, which conduct current and create a magnetic field that interacts with the stator to produce torque.

Induce Voltage

The process by which a voltage is generated in a conductor by changing the magnetic field around it.

Constant Speed

Maintaining a uniform speed regardless of load or other external conditions.