Poff Industries' Stock Currently Sells for $120 a Share

question 40

Multiple Choice

Poff Industries' stock currently sells for $120 a share.You own 100 shares of the stock.The company is contemplating a 2-for-1 stock split.Which of the following best describes what your position will be after such a split takes place?

• A) You will have 200 shares of stock, and the stock will trade at or near $60 a share.
• B) You will have 100 shares of stock, and the stock will trade at or near $60 a share.
• C) You will have 50 shares of stock, and the stock will trade at or near $120 a share.
• D) You will have 50 shares of stock, and the stock will trade at or near $60 a share.
• E) You will have 200 shares of stock, and the stock will trade at or near $120 a share.

---

Definitions:

Wage Rate

The amount of money paid to an employee for a specified quantity of work, typically expressed on an hourly, daily, or piecework basis.

Optimal Level

The most favorable point, level, or condition for achieving a specific goal or maximizing a specific outcome under given constraints.

Marginal Benefit

The boost in satisfaction or utility experienced by a consumer when consuming an extra unit of a good or service.

Immigration Law

Legal statutes and regulations that govern who can enter a country, how long they can stay, and what activities they can undertake while they are there.