Downie Foods Recently Completed a 4-For-1 Stock Split

question 7

Multiple Choice

Downie Foods recently completed a 4-for-1 stock split.Prior to the split, its stock sold for $120 per share.If the firm's total market value increased by 5% as a result of increased liquidity caused by the split, what was the stock price following the split?

• A) $28.43
• B) $29.93
• C) $31.50
• D) $33.08
• E) $34.73

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Definitions:

Ileum

The ileum is the final and longest segment of the small intestine, where most of the nutrients from digested food are absorbed.

Jejunum

The middle section of the small intestine in mammals, between the duodenum and ileum, where the absorption of nutrients and minerals occurs.

Duodenum

The first section of the small intestine, immediately following the stomach, where significant chemical digestion occurs.

Fundus

The upper part of a hollow organ, like the stomach or uterus, which is often opposite from the opening.