All Else Constant,a 5-For-4 Stock Split Will _____ the Number

question 27

Multiple Choice

All else constant,a 5-for-4 stock split will _____ the number of shares outstanding and _____ the market price per share.

• A)increase;decrease
• B)increase;increase
• C)decrease;increase
• D)increase;not change
• E)decrease;decrease

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Definitions:

Subjective Estimates

Assessments or judgments made that rely on personal feelings, tastes, or opinions rather than external observable phenomena.

Probability Outcomes

The set of possible results in an experiment or situation, often quantified as likelihoods or percentages.

Decision Tree Analysis

A graphical representation of possible solutions to a decision based on different conditions, often used in business to strategize investments or processes.

NPV

Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows associated with an investment, minus the initial investment cost.