Sligo Minerals stock is currently trading at $6 a share. The firm believes its primary clientele can afford to spend

Which one of the following is a direct result of a 2-for-1 stock split?    A.  a 100 percent increase in the number of shareholders B.  a 100 percent increase in the common stock account balance C.  a 100 percent decrease in the stock price D.  a 50 percent increase in the number of shares outstanding E.  a 50 percent decrease in the par value per share Refer to section 17.8

51.

Sligo Minerals stock is currently trading at $6 a share. The firm believes its primary clientele can afford to spend between $1,500 and $2,000 to purchase a round lot of 100 shares. The firm should consider a:    A.  reverse stock split. B.  liquidating dividend. C.  stock dividend. D.  stock split. E.  special dividend. Refer to section 17.8

52.

A one-for-four reverse stock split will:    A.  increase the par value by 25 percent. B.  increase the number of shares outstanding by 400 percent. C.  increase the market value but not affect the par value per share. D.  increase a $1 par value to $4. E.  increase a $1 par value to $5. Refer to section 17.8

53.

A firm wants to maintain a minimum stock price of $15 a share. Due to a recent market downturn, the stock is currently selling for $6 a share. The firm should consider a:    A.  3-for-1 stock split. B.  4-for-1 stock split. C.  1-for-3 reverse stock split. D.  1-for-4 reverse stock split. E.  1-for-5 reverse stock split. Refer to section 17.8

54.

Plyler Cabinets declared a dividend of $1.20 a share on May 15 to holders of record on Monday, June 1. The dividend is payable on June 15. Sara purchased 500 shares of Plyler Cabinets stock on Friday, May 29. How much dividend income will she receive on June 15 from Plyler Cabinets?    A.  $0 B.  $0.80 C.  $1.60 D.  $160.00 E.  $320.00 Sara will not receive any dividend income because she purchased the shares after the ex-dividend date.