Grant Corporation Declared a 2-For-1 Stock Split When It Had

question 43

Multiple Choice

Grant Corporation declared a 2-for-1 stock split when it had 12,000 shares of $5 par value common stock outstanding. If the market price of the stock had been $20 a share before the split, the par value, number of shares and approximate market value after the split would be: $\begin{array}{llll}&\text { Par Value No.}&\text { of Shares }&\text {Market Value }\\\text { A) } & \$ 2.50 & 24,000 & \$ 10.00 \\\text { B) } & \$ 2.50 & 24,000 & \$ 5.00 \\\text { C) } & \$ 2.50 & 12,000 & \$ 10.00 \\\text { D) } & \$ 5.00 & 24,000 & \$ 20.00\end{array}$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

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Definitions:

Proximate Cause

The primary reason something occurred in law, determining liability based on the directness of the relationship between an action and a harm.

Duty of Care

A legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.

Performance-based Regulation

Regulatory approach where entities are measured and rewarded based on their performance outcomes rather than adherence to prescriptive rules.

Consumer Advocacy Groups

Organizations that work to protect the rights and interests of consumers in relation to products, services, and policies.