Mid-State BankCorp Recently Declared a 7-For-2 Stock Split

question 23

Multiple Choice

Mid-State BankCorp recently declared a 7-for-2 stock split.Prior to the split,the stock sold for $100 per share.If the firm's total market value is unchanged by the split,what will the stock price be following the split?

• A) $35.71
• B) $28.57
• C) $28.86
• D) $26.29
• E) $25.43

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Definitions:

Punitive Damages

Monetary compensation awarded to an injured party that exceeds simple compensation and is intended to punish the wrongdoer.

Fair Labor Standards Act

A U.S. law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.

Federal Law

Legislation enacted by the national government of a country that applies to all its citizens and residents, overriding state or local laws where they conflict.

Employees Who Smoke

Workers who engage in the act of inhaling and exhaling the smoke of tobacco or a similar substance, often considered in the context of workplace policies.