USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 77

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
*2:1 Split on Stock Z after Close on Jan. 13, 2005
**3:1 Split on Stock X after Close on Jan. 15, 2005
The base date for index calculations is January 13, 2005
-Refer to Exhibit 4.2. What is the divisor at the beginning of January 16th?

• A) 1.9375
• B) 3.0
• C) 2.5
• D) 2.2734
• E) 3.2852

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Definitions:

Export Subsidy

An export subsidy is a government policy to encourage export of goods and discourage sale within the domestic market, by providing financial assistance or tax relief.

Domestic Price

The price of a good or service within a country; this can be influenced by tariffs, taxes, and supply and demand.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariff barriers.

Competition

The rivalry among businesses to attract customers, which can lead to improvements in products, services, and prices.