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

question 30

Multiple Choice

Mid-State BankCorp recently declared a 7-for-2 stock split.Prior to the split,the stock sold for $120 per share.If the firm's total market value is unchanged by the split,what will the stock price be following the split?

• A) $39.77
• B) $34.29
• C) $35.31
• D) $27.77
• E) $41.49

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Definitions:

Sex Chromosomes

Chromosomes that differ between the sexes; in humans, these represent the X and Y chromosomes.

Autosomes

Chromosomes that are not sex chromosomes; humans have 22 pairs of autosomes that carry the bulk of genetic material responsible for determining traits and functions.

Inheritance

The genetic process by which traits or characteristics are passed from parents to their offspring.

Assort Independently

A principle of genetic inheritance where genes for different traits are passed on independently of each other.