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GrogVix [38]
3 years ago
15

Last week, Weschler Paint Corp. completed a 3-for-1 stock split. Immediately prior to the split, its stock sold for $150 per sha

re. The firm's total market value was unchanged by the split. Other things held constant, what is the best estimate of the stock's post-split price? a. $52.50 b. $50.00 c. $60.78 d. $57.88 e. $55.13
Business
1 answer:
STALIN [3.7K]3 years ago
6 0

Answer:

The answer is B..

Explanation:

Stock split is the issuing of new shares to existing shareholders according to their current holdings from the total outstanding shares. It increases the number of outstanding shares.

Post-split stock price = Current price/new per old

Number of new shares = 3

Number of old shares = 1

Pre-split stock price = $150

Therefore, post-split stock price is:

1/3 x $150

=$50

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Imagine that the U.S. economy has an initial unemployment rate equal to the natural rate of unemployment. Identify each event as
PilotLPTM [1.2K]

Explanation:

Let’s explore one by one as proposed:

An oil cartel raises oil prices: all prices in the oil-related products will increase making it more expensive for companies to be able to afford employees. As the US economy is heavily based on oil import and consumption, the unemployment rate (let´s call it UR from now on) would increase. Countries that export more than import could benefit from this scenario.

The U.S. dollar gains value against foreign currencies: It would be more expensive to produce goods in the US as its currency becomes stronger. Hence companies could choose to produce overseas, increasing the UR. One of the factors that attract investments is a cheap currency, meaning that a company could operate there at lower costs than anywhere else.

American consumers expect higher income in the future: As fights about average salary would arise between employees and companies, igniting even sindicalization, its proper to think that the same as above could occur; companies could choose to produce overseas in countries less demanding of labor rights and income, such as China provinces (I would recommend for you to watch American Factory, a awarded Netflix documentary about that subject).

Brazil experiences economic growth and increases its demand for U.S. exports: as I said in the first alternative, a country that has increased or more expensive exports could benefit from that creating more jobs, in this case decreasing the UR. If Brazil demands more US products, more has to be produced by the country, which would mean more people employed in this attractive sector.

U.S. real estate values rise: to be honest, it only affects indirectly. As housing becomes more expensive, people have to work more to be able to afford housing. That would mean they seeking better-paying jobs or in the absence of those being homeless of at least unable to buy a home. We could argue that the UR would decrease because it becomes more expensive to afford housing and hence people would migrate more but that’s a long shot rationale.  

5 0
4 years ago
Read 2 more answers
Klumpro, a supplier of organic milk products, sells its products to Sweedinth, a dessert store and Klumpro's long-term customer,
Mars2501 [29]

Answer:

B) Relationship Behavior

Explanation:

Relationship Behavior is a part of customer relationship management (CRM) which guides behavior of people towards it's customers in a way so that the relationship can flourish.

<em>In this case,</em> what store owner did was a gesture of goodwill, trying to build a strong and healthy relationship with it's supplier. That will help the store itself in future.

5 0
3 years ago
In terms of revenue growth, LEGO experienced a competitive advantage over both Hasbro and Mattel since 2007 becuase it grew much
Ilya [14]

Answer:

Unique product.

Explanation:

The main driver of the LEGO's strategy is their unique product. Despite it is easily fakeble, LEGO has reach a level where the product is inseparable of the experience that offers the toy. Unlike, Hasbro or Mattel, unable yet, of produce a unique toy and an unique experience.

Some would say that is the marketing strategy the actual competitive advantage, but is important to remember that there is no good marketing strategy without a good product.

7 0
3 years ago
Charlize is monitoring market indicators in a particular area for her client who wants to buy an oceanfront home. Which market i
Dmitrij [34]

Answer:

Price levels

Explanation:

Price level is an indicator that is obtained by getting the average price of goods that are produced within an economy or an industry.

When prices rise it indicates that demand for a good is on the rise and eventually an inflation may result. When price falls demand has reduced and deflation may result.

In the given scenario price level is the best indicator to show how prices of properties in the area have fluctuated.

It will also give insight into how good a property purchase will be.

4 0
3 years ago
He idea of supply and demand is based on the development of
shepuryov [24]

Answer:

In 1890, Alfred Marshall's Principles of Economics developed a supply-and-demand curve that is still used to demonstrate the point at which the market is in equilibrium. ... The prices of some goods can increase without reducing demand, which means their prices are inelastic.

7 0
4 years ago
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