Keys Financial Has Done Extremely Well in Recent Years,and Its

question 1

Multiple Choice

Keys Financial has done extremely well in recent years,and its stock now sells for $70 per share.Management wants to get the price down to a more typical level,which it thinks is $40.00 per share.What stock split would be required to get to this price,assuming the transaction has no effect on the total market value? Put another way,how many new shares should be given per one old share?

• A) 1.40
• B) 2.01
• C) 1.75
• D) 1.58
• E) 2.28

---

Definitions:

Creative

The ability or quality of generating innovative ideas, approaches, or solutions.

Emotional Intelligence

The skill to recognize, regulate, and articulate emotions while dealing with others in a considerate and empathetic way.

Management Scholars

Academics or researchers dedicated to studying and advancing the field of management through teaching, researching, and publishing scholarly work.

Impression Management

The process by which individuals attempt to control the perceptions or impressions others form of them in social or organizational contexts.