Urvashi owns 10 shares of Kloud Komputing stock, with a market value of $500 per share. The company issues a 2-for-1 stock split. After the split, what is the total value of Urvashi's stake in Kloud Komputing?
A) $10,000
B) $2,500
C) $5,000
D) $1,000
E) $20,000
Answer: C
Explanation: C) In a 2-for-1 stock split, the value of the Kloud shares is cut in half to $250, and the number of shares Urvashi holds is doubled to 20. Urvashi now has twice as many shares, but the total value remains the same when the stock is split. The value of Urvashi's holdings will increase or decrease as the share price of $250 fluctuates with the market.
You might also like to view...
The correct term for an entry made to the left side of an account is
a. Double-entry system b. Debit c. Credit d. Journalizing
The Antarctica Co acquired a machine on January 1, 2016, at a cost of $60,000. The machine is expected to have a ten-year life and a residual value of $5,000. The estimated lifetime output from the machine is expected to be 55,000 units. Under which of the following depreciation methods would the depreciation charge be the greatest in 2016 if 9,100 units were produced during the year?
A) activity (units-of-output) method B) straight-line method C) sum-of-the-years'-digits method D) double-declining-balance method
________ is a set of moral principles or values that governs the conduct of an individual or a group
A) Rationality B) Evolution C) Ethics D) Reason
A random sample of 100,000 credit sales in a department store showed an average sale of $87.25. From past data, it is known that the standard deviation of the population is $20.00. With a .95 probability, determine the margin of error.
A. .000392 B. 39.2 C. .124 D. .0276