Becker Financial Recently Declared a 2-For-1 Stock Split

question 66

Multiple Choice

Becker Financial recently declared a 2-for-1 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) $51.50
• B) $45.50
• C) $50.00
• D) $38.50
• E) $49.00

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Definitions:

Operant Behavior

Behavior that is influenced by the consequences that follow it, with rewards typically increasing and punishments decreasing the likelihood of the behavior's recurrence.

Cognitive Processes

The mental activities involved in acquiring, processing, and storing knowledge, including perception, memory, and reasoning.

Biological Constraints

Limitations on learning that result from the biological makeup of an organism, influencing the ease or difficulty of learning new behaviors.

Punishment

A consequence designed to reduce a behavior through unpleasant outcomes or experiences.