Stark Industries Currently Trades for $50 Per Share and Has

question 8

Multiple Choice

Stark Industries currently trades for $50 per share and has 175M shares outstanding.It announces that it will execute a reverse-split on a 1-for-3 basis.How many shares will be outstanding after the split?

• A) 52.50 M
• B) 58.33 M
• C) 116.67 M
• D) 175.00 M
• E) 233.33 M

---

Definitions:

Marginal Product

The additional output resulting from the use of one more unit of a productive input, holding other inputs constant.

Production Function

An equation that describes the maximum output of a good achieved from a given number of inputs.

Input

The inputs such as labor, materials, or resources utilized in creating products and services.

Convexity

In economics and finance, convexity refers to the shape of the curve that demonstrates how the duration of a bond changes as the interest rate changes.