Immediately After the Stock Split, the Stock Price Will Be

question 87

Multiple Choice

Immediately after the stock split, the stock price will be approximately

• A) $42.
• B) $84.
• C) $2.00.
• D) $8.00.

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Definitions:

Net Capital Spending

The total spending on fixed assets minus the proceeds from the sale of fixed assets over a period.

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of accounting standards for financial reporting by Canadian companies.

Fair Value Accounting

An accounting approach where companies measure and report the value of certain assets and liabilities on the basis of their actual or estimated fair market price.