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MGT 5002 Final Exam MCQ




Question;1). If in the opinion of a;given investor a stock?s expected return exceeds its required return, this;suggests that the investor thinks;a. the stock is experiencing;supernormal growth.;b. the stock should be sold.;c. the stock is a good buy.;d. management is probably not trying to maximize the price per share.;e. dividends are not likely to be declared.;2). The preemptive right is;important to shareholders because it;a. allows managers to buy;additional shares below the current market price.;b. will result in higher dividends per share.;c. is included in every corporate charter.;d. protects the current shareholders against a dilution of their ownership;interests.;e. protects bondholders, and thus enables the firm to issue debt with a;relatively low interest rate.;3). Companies can issue;different classes of common stock. Which of the following statements;concerning stock classes is CORRECT?;a. All common stocks fall into;one of three classes: A, B, and C.;b. All common stocks, regardless of class, must have the same voting;rights.;c. All firms have several classes of common stock.;d. All common stock, regardless of class, must pay the same dividend.;e. Some class or classes of common stock are entitled to more votes per;share than other classes.;4). If a stock?s dividend is;expected to grow at a constant rate of 5% a year, which of the following;statements is CORRECT? The stock is in equilibrium.;a. The expected return on the;stock is 5% a year.;b. The stock?s dividend yield is 5%.;c. The price of the stock is expected to decline in the future.;d. The stock?s required return must be equal to or less than 5%.;e. The stock?s price one year from now is expected to be 5% above the;current price.;5). Which of the following;statements is CORRECT?;a. To implement the corporate;valuation model, we discount projected free cash flows at the weighted average;cost of capital.;b. To implement the corporate valuation model, we discount net operating;profit after taxes (NOPAT) at the weighted average cost of capital.;c. To implement the corporate valuation model, we discount projected net;income at the weighted average cost of capital.;d. To implement the corporate valuation model, we discount projected free;cash flows at the cost of equity capital.;e. The corporate valuation model requires the assumption of a constant;growth rate in all years.;6). Which of the following;statements is CORRECT?;a. A major disadvantage of;financing with preferred stock is that preferred stockholders typically have;supernormal voting rights.;b. Preferred stock is normally expected to provide steadier, more reliable;income to investors than the same firm?s common stock, and, as a result, the;expected after-tax yield on the preferred is lower than the after-tax expected;return on the common stock.;c. The preemptive right is a provision in all corporate charters that;gives preferred stockholders the right to purchase (on a pro rata basis) new;issues of preferred stock.;d. One of the disadvantages to a corporation of owning preferred stock is;that 70% of the dividends received represent taxable income to the corporate;recipient, whereas interest income earned on bonds would be tax free.;e. One of the advantages to financing with preferred stock is that 70% of;the dividends paid out are tax deductible to the issuer.;7). If D1 = $1.25, g (which is;constant) = 5.5%, and P0 = $44, what is the stock?s expected total return for;the coming year?;a. 7.54%;b. 7.73%;c. 7.93%;d. 8.13%;e. 8.34%;8). Bankston Corporation;forecasts that if all of its existing financial policies are followed, its;proposed capital budget would be so large that it would have to issue new;common stock. Since new stock has a higher cost than retained earnings;Bankston would like to avoid issuing new stock. Which of the following;actions would REDUCE its need to issue new common stock?;a. Increase the dividend payout;ratio for the upcoming year.;b. Increase the percentage of debt in the target capital structure.;c. Increase the proposed capital budget.;d. Reduce the amount of short-term bank debt in order to increase the;current ratio.;e. Reduce the percentage of debt in the target capital structure.;9). When working with the CAPM;which of the following factors can be determined with the most precision?;a. The market risk premium;(RPM).;b. The beta coefficient, bi, of a relatively safe stock.;c. The most appropriate risk-free rate, rRF.;d. The expected rate of return on the market, rM.;e. The beta coefficient of ?the market,? which is the same as the beta of;an average stock.;10). LaPango Inc. estimates;that its average-risk projects have a WACC of 10%, its below-average risk;projects have a WACC of 8%, and its above-average risk projects have a WACC of;12%. Which of the following projects (A, B, and C) should the company;accept?;a. Project B, which is of;below-average risk and has a return of 8.5%.;b. Project C, which is of above-average risk and has a return of 11%.;c. Project A, which is of average risk and has a return of 9%.;d. None of the projects should be accepted.;e. All of the projects should be accepted.;11). O'Brien Inc. has the;following data: rRF = 5.00%, RPM = 6.00%, and b = 1.05. What is the;firm's cost of equity from retained earnings based on the CAPM?;a. 11.30%;b. 11.64%;c. 11.99%;d. 12.35%;e. 12.72%;12). Scanlon Inc.'s CFO hired;you as a consultant to help her estimate the cost of capital. You have;been provided with the following data: rRF = 4.10%, RPM = 5.25%, and b =;1.30. Based on the CAPM approach, what is the cost of equity from;retained earnings?;a. 9.67%;b. 9.97%;c. 10.28%;d. 10.60%;e. 10.93%;13). A. Butcher Timber Company;hired your consulting firm to help them estimate the cost of equity. The;yield on the firm's bonds is 8.75%, and your firm's economists believe that the;cost of equity can be estimated using a risk premium of 3.85% over a firm's own;cost of debt. What is an estimate of the firm's cost of equity from;retained earnings?;a. 12.60%;b. 13.10%;c. 13.63%;d. 14.17%;e. 14.74%;14). You were hired as a;consultant to Giambono Company, whose target capital structure is 40% debt, 15%;preferred, and 45% common equity. The after-tax cost of debt is 6.00%;the cost of preferred is 7.50%, and the cost of retained earnings is;12.75%. The firm will not be issuing any new stock. What is its;WACC?;a. 8.98%;b. 9.26%;c. 9.54%;d. 9.83%;e. 10.12%;15). Which of the following;statements is CORRECT?;a. Since debt capital can cause;a company to go bankrupt but equity capital cannot, debt is riskier than;equity, and thus the after-tax cost of debt is always greater than the cost of;equity.;b. The tax-adjusted cost of debt is always greater than the interest rate;on debt, provided the company does in fact pay taxes.;c. If a company assigns the same cost of capital to all of its projects;regardless of each project?s risk, then the company is likely to reject some;safe projects that it actually should accept and to accept some risky projects;that it should reject.;d. Because no flotation costs are required to obtain capital as retained;earnings, the cost of retained earnings is generally lower than the after-tax;cost of debt.;e. Higher flotation costs tend to reduce the cost of equity capital.;16). Which of the following;statements is CORRECT?;a. The component cost of;preferred stock is expressed as rp(1 - T). This follows because preferred;stock dividends are treated as fixed charges, and as such they can be deducted;by the issuer for tax purposes.;b. A cost should be assigned to retained earnings due to the opportunity;cost principle, which refers to the fact that the firm?s stockholders would;themselves expect to earn a return on earnings that were paid out rather than;retained and reinvested.;c. No cost should be assigned to retained earnings because the firm does;not have to pay anything to raise them. They are generated as cash flows;by operating assets that were raised in the past, hence they are ?free.?;d. Suppose a firm has been losing money and thus is not paying taxes, and;this situation is expected to persist into the foreseeable future. In;this case, the firm?s before-tax and after-tax costs of debt for purposes of;calculating the WACC will both be equal to the interest rate on the firm?s currently;outstanding debt, provided that debt was issued during the past 5 years.;e. If a firm has enough retained earnings to fund its capital budget for;the coming year, then there is no need to estimate either a cost of equity or a;WACC.;17). Which of the following;statements is CORRECT? Assume that the project being considered has;normal cash flows, with one outflow followed by a series of inflows.;a. A project?s NPV is found by;compounding the cash inflows at the IRR to find the terminal value (TV), then;discounting the TV at the WACC.;b. The lower the WACC used to calculate it, the lower the calculated NPV;will be.;c. If a project?s NPV is less than zero, then its IRR must be less than;the WACC.;d. If a project?s NPV is greater than zero, then its IRR must be less than;zero.;e. The NPV of a relatively low-risk project should be found using a;relatively high WACC.;18). Which of the following;statements is CORRECT?;a. One defect of the IRR method;is that it does not take account of cash flows over a project?s full life.;b. One defect of the IRR method is that it does not take account of the;time value of money.;c. One defect of the IRR method is that it does not take account of the cost;of capital.;d. One defect of the IRR method is that it values a dollar received today;the same as a dollar that will not be received until sometime in the future.;e. One defect of the IRR method is that it assumes that the cash flows to;be received from a project can be reinvested at the IRR itself, and that;assumption is often not valid.;19). Which of the following;statements is CORRECT? Assume that the project being considered has;normal cash flows, with one outflow followed by a series of inflows.;a. The longer a project?s;payback period, the more desirable the project is normally considered to be by;this criterion.;b. One drawback of the payback criterion for evaluating projects is that;this method does not properly account for the time value of money.;c. If a project?s payback is positive, then the project should be rejected;because it must have a negative NPV.;d. The regular payback ignores cash flows beyond the payback period, but;the discounted payback method overcomes this problem.;e. If a company uses the same payback requirement to evaluate all;projects, say it requires a payback of 4 years or less, then the company will;tend to reject projects;20). Which of the following;statements is CORRECT?;a. The NPV method assumes that;cash flows will be reinvested at the WACC, while the IRR method assumes;reinvestment at the IRR.;b. The NPV method assumes that cash flows will be reinvested at the;risk-free rate, while the IRR method assumes reinvestment at the IRR.;c. The NPV method assumes that cash flows will be reinvested at the WACC;while the IRR method assumes reinvestment at the risk-free rate.;d. The NPV method does not consider all relevant cash flows, particularly;cash flows beyond the payback period.;e. The IRR method does not consider all relevant cash flows, particularly;cash flows beyond the payback period.;21). Which of the following;statements is CORRECT?;a. The IRR method appeals to;some managers because it gives an estimate of the rate of return on projects;rather than a dollar amount, which the NPV method provides.;b. The discounted payback method eliminates all of the problems associated;with the payback method.;c. When evaluating independent projects, the NPV and IRR methods often;yield conflicting results regarding a project's acceptability.;d. To find the MIRR, we discount the TV at the IRR.;e. A project?s NPV profile must intersect the X-axis at the project?s;WACC.;22). Which of the following;statements is CORRECT? Assume that all projects being considered have;normal cash flows and are equally risky.;a. If a project?s IRR is equal;to its WACC, then, under all reasonable conditions, the project?s NPV must be;negative.;b. If a project?s IRR is equal to its WACC, then under all reasonable;conditions, the project?s IRR must be negative.;c. If a project?s IRR is equal to its WACC, then under all reasonable;conditions the project?s NPV must be zero.;d. There is no necessary relationship between a project?s IRR, its WACC;and its NPV.;e. When evaluating mutually exclusive projects, those projects with;relatively long lives will tend to have relatively high NPVs when the cost of;capital is relatively high.;23). Which of the following;statements is CORRECT?;a. A sunk cost is any cost that;must be expended in order to complete a project and bring it into operation.;b. A sunk cost is any cost that was expended in the past but can be;recovered if the firm decides not to go forward with the project.;c. A sunk cost is a cost that was incurred and expensed in the past and;cannot be recovered if the firm decides not to go forward with the project.;d. Sunk costs were formerly hard to deal with, but once the NPV method;came into wide use, it became possible to simply include sunk costs in the cash;flows and then calculate the project?s NPV.;e. A good example of a sunk cost is a situation where Home Depot opens a;new store, and that leads to a decline in sales of one of the firm?s existing;stores.;24). Which of the following factors should be included in the cash flows;used to estimate a project?s NPV?;a. All costs associated with the;project that have been incurred prior to the time the analysis is being;conducted.;b. Interest on funds borrowed to help finance the project.;c. The end-of-project recovery of any additional net operating working;capital required to operate the project.;d. Cannibalization effects, but only if those effects increase the;project?s projected cash flows.;e. Expenditures to date on research and development related to the;project, provided those costs have already been expensed for tax purposes.;25). Which one of the following;would NOT result in incremental cash flows and thus should NOT be included in;the capital budgeting analysis for a new product?;a. A firm has a parcel of land;that can be used for a new plant site or be sold, rented, or used for;agricultural purposes.;b. A new product will generate new sales, but some of those new sales will;be from customers who switch from one of the firm?s current products.;c. A firm must obtain new equipment for the project, and $1 million is;required for shipping and installing the new machinery.;d. A firm has spent $2 million on research and development associated with;a new product. These costs have been expensed for tax purposes, and they;cannot be recovered regardless of whether the new project is accepted or;rejected.;e. A firm can produce a new product, and the existence of that product;will stimulate sales of some of the firm?s other products.;26). Taussig Technologies is;considering two potential projects, X and Y. In assessing the projects?;risks, the company estimated the beta of each project versus both the company?s;other assets and the stock market, and it also conducted thorough scenario and;simulation analyses. This research produced the following data;Project X Project;Y;Expected NPV $350,000 $350,000;Standard deviation (?NPV) $100,000 $150,000;Project beta (vs. market);1.4 0.8;Correlation of the;project cash flows with;cash flows from currently;existing projects Cash flows are not;correlated with the;cash flows from;existing projects Cash flows are highly;correlated with the;cash flows from;existing projects;Which of the following statements is;CORRECT?;a. Project X has more;stand-alone risk than Project Y.;b. Project X has more corporate (or within-firm) risk than Project Y.;c. Project X has more market risk than Project Y.;d. Project X has the same level of corporate risk as Project Y.;e. Project X has the same market risk as Project Y since its cash flows;are not correlated with the cash flows of existing projects.;27). A firm is considering a;new project whose risk is greater than the risk of the firm?s average project;based on all methods for assessing risk. In evaluating this project, it;would be reasonable for management to do which of the following?;a. Increase the estimated IRR;of the project to reflect its greater risk.;b. Increase the estimated NPV of the project to reflect its greater risk.;c. Reject the project, since its acceptance would increase the firm?s;risk.;d. Ignore the risk differential if the project would amount to only a;small fraction of the firm?s total assets.;e. Increase the cost of capital used to evaluate the project to reflect;its higher-than-average risk.;28). As assistant to the CFO of;Boulder Inc., you must estimate the Year 1 cash flow for a project with the;following data. What is the Year 1 cash flow?;Sales revenues $13,000;Depreciation $4,000;Other operating costs $6,000;Tax rate 35.0%;a. $5,950;b. $6,099;c. $6,251;d. $6,407;e. $6,568;29). Which one of the following;is an example of a ?flexibility? option?;a. A company has an option to;invest in a project today or to wait for a year before making the commitment.;b. A company has an option to close down an operation if it turns out to;be unprofitable.;c. A company agrees to pay more to build a plant in order to be able to;change the plant's inputs and/or outputs at a later date if conditions change.;d. A company invests in a project today to gain knowledge that may enable;it to expand into different markets at a later date.;e. A company invests in a jet aircraft so that its CEO, who must travel;frequently, can arrive for distant meetings feeling less tired than if he had;to fly a commercial airline.;30). Langston Labs has an;overall (composite) WACC of 10%, which reflects the cost of capital for its;average asset. Its assets vary widely in risk, and Langston evaluates;low-risk projects with a WACC of 8%, average-risk projects at 10%, and;high-risk projects at 12%. The company is considering the following;projects;Project Risk Expected;Return;A High 15%;B Average 12%;C High 11%;D Low 9%;E Low 6%;Which set of projects would maximize;shareholder wealth?;a. A and B.;b. A, B, and C.;c. A, B, and D.;d. A, B, C, and D.;e. A, B, C, D, and E.;(Comp.) Real options;31). Which one of the following will NOT increase the value of a real;option?;a. Lengthening the time during;which a real option must be exercised.;b. An increase in the volatility of the underlying source of risk.;c. An increase in the risk-free rate.;d. An increase in the cost of obtaining the real option.;e. A decrease in the probability that a competitor will enter the market;of the project in question.;32). Gleason Research regularly;takes real options into account when evaluating its proposed projects.;Specifically, it considers the option to abandon a project whenever it turns;out to be unsuccessful (the abandonment option), and it evaluates whether it is;better to invest in a project today or to wait and collect more information;(the investment timing option). Assume the proposed projects can be;abandoned at any time without penalty. Which of the following statements;is CORRECT?;a. The abandonment option tends;to reduce a project's NPV.;b. The abandonment option tends to reduce a project's risk.;c. If there are important first-mover advantages, this tends to increase;the value of waiting a year to collect more information before proceeding with;a proposed project.;d. A project can either have an abandonment option or an investment timing;option, but never both.;e. Investment timing options always increase the value of a project.;33). is considering a;plan to develop an online finance tutoring package that has the cost and;revenue projections shown below. One of Tutor's larger competitors;Online Professor (OP), is expected to do one of two things in Year 5: (1);develop its own competing program, which will put Tutor's program out of;business, or (2) offer to buy Tutor's program if it decides that this would be;less expensive than developing its own program. Tutor thinks there is a;35% probability that its program will be purchased for $6 million and a 65%;probability that it won't be bought, and thus the program will simply be closed;down with no salvage value. What is the estimated net present value of;the project (in thousands) at a WACC = 10%, giving consideration to the;potential future purchase?;WACC =;10.0% 0 1 2 3 4 5;Original;project: -$3,000 $500 $500 $500 $500 $500;Future Prob.;Buys 35% $6,000;Doesn't buy 65% $0;a. $161.46;b. $179.40;c. $199.33;d. $219.26;e. $241.19;34). An increase in the debt;ratio will generally have no effect on which of these items?;a. Business risk.;b. Total risk.;c. Financial risk.;d. Market risk.;e. The firm's beta.;35). Based on the information;below, what is the firm's optimal capital structure?;a. Debt = 40%, Equity = 60%;EPS = $2.95, Stock price = $26.50.;b. Debt = 50%, Equity = 50%, EPS = $3.05, Stock price = $28.90.;c. Debt = 60%, Equity = 40%, EPS = $3.18, Stock price = $31.20.;d. Debt = 80%, Equity = 20%, EPS = $3.42, Stock price = $30.40.;e. Debt = 70%, Equity = 30%, EPS = $3.31, Stock price = $30.00.;36). Which of the following;events is likely to encourage a company to raise its target debt ratio, other;things held constant?;a. An increase in the corporate;tax rate.;b. An increase in the personal tax rate.;c. An increase in the company?s operating leverage.;d. The Federal Reserve tightens interest rates in an effort to fight;inflation.;e. The company's stock price hits a new high.;37). The firm?s target capital;structure should do which of the following?;a. Maximize the earnings per;share (EPS).;b. Minimize the cost of debt (rd).;c. Obtain the highest possible bond rating.;d. Minimize the cost of equity (rs).;e. Minimize the weighted average cost of capital (WACC).;38). Which of the following;statements is CORRECT, holding other things constant?;a. Firms whose assets are;relatively liquid tend to have relatively low bankruptcy costs, hence they tend;to use relatively little debt.;b. An increase in the personal tax rate is likely to increase the debt;ratio of the average corporation.;c. If changes in the bankruptcy code make bankruptcy less costly to;corporations, then this would likely lead to lower debt ratios for;corporations.;d. An increase in the company?s degree of operating leverage would tend to;encourage the firm to use more debt in its capital structure so as to keep its;total risk unchanged.;e. An increase in the corporate tax rate would in theory encourage;companies to use more debt in their capital structures.;39). Which of the following;statements is CORRECT?;a. In general, a firm with low;operating leverage also has a small proportion of its total costs in the form;of fixed costs.;b. There is no reason to think that changes in the personal tax rate would;affect firms? capital structure decisions.;c. A firm with a relatively high business risk is more likely to increase;its use of financial leverage than a firm with low business risk, assuming all;else equal.;d. If a firm's after-tax cost of equity exceeds its after-tax cost of;debt, it can always reduce its WACC by increasing its use of debt.;e. Suppose a firm has less than its optimal amount of debt. Increasing;its use of debt to the point where it is at its optimal capital structure will;decrease the costs of both debt and equity.;40). Longstreet Inc. has fixed;operating costs of $470,000, variable costs of $2.80 per unit produced, and its;product sells for $4.00 per unit. What is the company's break-even point;i.e., at what unit sales volume would income equal costs?;a. 391,667;b. 411,250;c. 431,813;d. 453,403;e. 476,073;41). Southwest U's campus book;store sells course packs for $15 each, the variable cost per pack is $9, fixed;costs to produce the packs are $200,000, and expected annual sales are 50,000;packs. What are the pre-tax profits from sales of course packs?;a. $ 72,900;b. $ 81,000;c. $ 90,000;d. $100,000;e. $110,000;42). Your uncle is considering;investing in a new company that will produce high quality stereo;speakers. The sales price would be set at 1.5 times the variable cost per;unit, the variable cost per unit is estimated to be $75.00, and fixed costs are;estimated at $1,200,000. What sales volume would be required to break;even, i.e., to have EBIT = zero?;a. 28,880;b. 30,400;c. 32,000;d. 33,600;e. 35,280;43). In the real world;dividends;a. are usually more stable than;earnings.;b. fluctuate more widely than earnings.;c. tend to be a lower percentage of earnings for mature firms.;d. are usually changed every year to reflect earnings changes, and these;changes are randomly higher to lower, depending on whether earnings increased;or decreased.;e. are usually set as a fixed percentage of earnings, e.g., at 40% of;earnings, so if EPS = $2.00, then DPS would equal $0.80. Once the;percentage is set, then dividend policy is on ?automatic pilot? and the;dividend actually paid depends strictly on earnings.;44). You own 100 shares of;Troll Brothers' stock, which currently sells for $120 a share. The company;is about to declare a 2-for-1 stock split. Which of the following best;describes your likely position after the split?;a. You will have 200 shares of;stock, and the stock will trade at or near $120 a share.;b. You will have 200 shares of stock, and the stock will trade at or near;$60 a share.;c. You will have 100 shares of stock, and the stock will trade at or near;$60 a share.;d. You will have 50 shares of stock, and the stock will trade at or near;$120 a share.;e. You will have 50 shares of stock, and the stock will trade at or near;$600 a share.;45). Myron Gordon and John;Lintner believe that the required return on equity increases as the dividend;payout ratio is lowered. Their argument is based on the assumption that;a. investors are indifferent;between dividends and capital gains.;b. investors require that the dividend yield plus the capital gains yield;equal a constant.;c. capital gains are taxed at a higher rate than dividends.;d. investors view dividends as being less risky than potential future;capital gains.;e. investors prefer a dollar of expected capital gains to a dollar of;expected dividends because of the lower tax rate on capital gains.;46). Which of the following;would be most likely to lead to a decrease in a firm's dividend payout ratio?;a. Its earnings become more;stable.;b. Its access to the capital markets increases.;c. Its research and development efforts pay off, and it now has more;high-return investment opportunities.;d. Its accounts receivable decrease due to a change in its credit policy.;e. Its stock price has increased over the last year by a greater;percentage than the increase in the broad stock market averages.;47). Which of the following;statements about dividend policies is CORRECT?;a. Miller and Modigliani argued;that investors prefer dividends to capital gains because dividends are more;certain than capital gains. They call this the ?bird-in-the-hand? effect.;b. One reason that companies tend to favor distributing excess cash as;dividends rather than by repurchasing stock is that dividends are normally;taxed at a lower rate than gains on repurchased stock.;c. One advantage of dividend reinvestment plans is that they allow;shareholders to delay paying taxes on the dividends that they choose to;reinvest.;d. One key advantage of the residual dividend model is that it enables a;company to follow a stable dividend policy.;e. The clientele effect suggests that companies should follow a stable;dividend policy.;48). Which of the following;statements is CORRECT?;a. One disadvantage of dividend;reinvestment plans is that they increase transactions costs for investors who;want to increase their investment in the company.;b. One advantage of dividend reinvestment plans is that they enable;investors to postpone paying taxes on the dividends credited to their account.;c. Stock repurchases can be used by a firm that wants to increase its debt;ratio.;d. Stock repurchases make sense if a company expects to have a lot of;profitable new projects to fund over the next few years, provided investors are;aware of these investment opportunities.;e. One advantage of an open market dividend reinvestment plan is that it;provides new equity capital and increases the shares outstanding.;49). Which of the following;statements is CORRECT?;a. Historically, the tax code;has encouraged companies to pay dividends rather than retain earnings.;b. If a company uses the residual dividend model to determine its dividend;payments, dividend payout will tend to increase whenever its profitable;investment opportunities increase relatively rapidly.;c. The more a firm's management believes in the clientele effect, the more;likely the firm is to adhere strictly to the residual dividend model.;d. Large stock repurchases financed by debt tend to increase expected;earnings per share, but they also tend to increase the firm's financial risk.;e. A dollar paid out to repurchase stock has the same tax benefit as a;dollar paid out in dividends. Thus, both companies and investors should;be indifferent between distributing cash through dividends and stock repurchase;programs.;50). Mid-State BankCorp;recently declared a 7-for-2 stock split. Prior to the split, the stock;sold for $80 per share. If the firm's total market value is unchanged by;the split, what will the stock price be following the split?;a. $20.63;b. $21.71;c. $22.86;d. $24.00;e. $25.20


Paper#51723 | Written in 18-Jul-2015

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