Immediately After the Stock Split, an Investor Who Owned 100

question 115

Multiple Choice

Immediately after the stock split, an investor who owned 100 share before the split will own

• A) 100 shares worth a total of $4200.
• B) 200 shares worth a total of $8400.
• C) 200 shares worth a total of $16,800.
• D) 200 shares with a par value of $8.00 each.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, due to past transactions or events.

Revenue

The complete financial intake a company secures from transactions involving goods or services within a certain interval.

Expenses

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.

Held-to-maturity Securities

Financial assets purchased with the intention and ability to hold them until a specified maturity date.