Whited Products Recently Completed a 4-For-1 Stock Split

question 27

Multiple Choice

Whited Products recently completed a 4-for-1 stock split.Prior to the split,its stock sold for $105 per share.If the firm's total market value increased by 4% as a result of increased liquidity and favorable signaling effects,what was the stock price following the split?

• A) $26.21
• B) $24.57
• C) $20.75
• D) $27.30
• E) $21.84

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Definitions:

Rational-legal

Rational-legal authority is a form of leadership where authority is legitimized by legal rules and regulations, and the power is attached to certain positions rather than individuals.

Charismatic

Possessing a compelling charm or appeal that inspires devotion or admiration in others.

Traditional

Adhering to or denoting ways of doing things that are passed down from generation to generation, often resistant to change.

Power Elite

A small group of powerful individuals who hold significant wealth, political influence, and authority in society, often shaping policy and decision-making.