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.

Describe the role and impact of currency exchange for international trade beyond importing and exporting.

Recognize the structure and components of a nation's balance of payments.

Understand the effects of trade balances on national economies and currency values.

Evaluate the dynamics of fixed versus flexible exchange rate systems.

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Definitions:

Step-Down Method

An allocation technique used in cost accounting to assign overhead costs to various cost objects based on a hierarchical order.

Service Department Costs

Expenses associated with the departments that do not directly produce goods but provide support services to production departments, influencing the overall cost of operations.

Geriatric Medicine

A branch of medicine focusing on health care for elderly people, aiming to promote health by preventing and treating diseases and disabilities in older adults.

Personnel Costs

Personnel costs refer to the expenses associated with employing staff, including wages, benefits, training, and other related costs.