Use the Information for the Question(s)below

question 69

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 25% stock dividend,then Luther's new share price is closest to:

• A)$24.00.
• B)$30.00.
• C)$16.00.
• D)$32.00.

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Definitions:

James Tallmadge

A U.S. politician known for proposing an amendment to limit the spread of slavery in Missouri during its admission to the Union.

Missouri Statehood

The admission of Missouri as the 24th state of the United States on August 10, 1821, following the Missouri Compromise.

Maine

A U.S. state located in the northeastern part of the country, known for its scenic coastlines and maritime history.

Northwest Ordinance

A significant law passed by the United States Congress in 1787 that provided a method for admitting new states to the Union from the Northwest Territory.