Rough Rider Disposal Inc

question 68

Essay

Rough Rider Disposal Inc.is having a stock split.The current price is $57 per share,and you own 500 shares.The split is a one-and-one-half-shares-for-one share split.What is the expected per share price after the split? What is your wealth before and after the split? Based on empirical evidence,does the market value of outstanding shares (new price times new quantity)tend to increase or decrease on average when stocks split into a greater number (but lower priced)shares,as in this problem?

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Definitions:

Memory Performance

The efficiency and accuracy with which an individual can recall or recognize previously learned information.

Learning

Learning is the process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences, often through study, experience, or teaching.

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, relatively inhibited sensory activity, and inhibition of nearly all voluntary muscles.

Narcolepsy

A neurological disorder that affects the control of sleep and wakefulness, leading to excessive daytime sleepiness and uncontrollable sleep attacks.