You Own Stock in a Company That Just Announced a 1-3

question 11

Multiple Choice

You own stock in a company that just announced a 1-3 reverse stock split.If shares currently trade at $15 a share,what should the stock price be after the reverse stock split?

• A) $15
• B) $5
• C) $45
• D) $30

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Definitions:

Decision

The process or action of choosing among alternatives, often based on analysis and information to achieve a desired goal.

Overtime

Extra hours worked beyond the regular working schedule, often compensated at a higher pay rate.

Production Constraint

A limitation or bottleneck in the production process that restricts output, efficiency, or the utilization of resources.

Profits

The financial gain achieved when the revenues from business operations exceed the expenses, costs, and taxes involved in sustaining the operation.