Toombs Media Corp

question 17

Multiple Choice

Toombs Media Corp.recently completed a 3-for-1 stock split.Prior to the split,its stock sold for $160 per share.The firm's total market value was unchanged by the split.Other things held constant,what is the best estimate of the stock's post-split price?

• A) $55.47
• B) $50.67
• C) $40.00
• D) $41.60
• E) $53.33

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Definitions:

Unemployment Rate

The proportion of the labor force that remains unemployed and is actively looking for ways to gain employment.

Cyclical Unemployment

Unemployment caused by the downturns of the economic cycle, such as recessions.

Natural Rate of Unemployment

The level of unemployment consistent with a stable rate of inflation, caused by the supply and demand for labor adjusting to various market factors.

Actual Rate of Unemployment

The proportion of the labor force that is jobless and actively looking for employment at any given time.