The Board of Directors Announces a 2-For-1 Stock Split on 20,000

question 14

Multiple Choice

The board of directors announces a 2-for-1 stock split on 20,000 outstanding common shares,with an average issue price of $15.Immediately after the stock split,the:

• A) book value of the shares increases to $30 per share
• B) issued shares decrease to 10,000
• C) average issue price of the shares remains the same
• D) issued and outstanding shares increase to 40,000

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Definitions:

Fuel Saving

Techniques or measures adopted to reduce the consumption of fuel, enhancing efficiency.

Hybrid Vehicles

Cars that use a combination of at least one electric motor alongside a gasoline engine to propel the vehicle, often enhancing fuel efficiency.

Public Transportation

Systems of transport for passengers that are available for use by the general public, typically managed on a schedule and operated on established routes.