In a 2 for 1 stock split, par
value and market value will be 1/2 of what they were prior to the split and
number of shares will be two times what it was.
So,
par value will be 6 x 0.5 = $
3.00
market value will be 25 x 0.5
= $ 12.50
number of shares 8,000 x 2 will be
16,000 shares
The given question is about Business studies.
Hallmark uses <u>Selective </u>distribution.
Selective Distribution: This refers to a strategy where a firm opens a particular or less number of outlets first in a specific location. This might be limiting at first but is surely a good start as this not only reduces the chances of loss instead helps the brand/ firm to prosper and focus on its product quality. Initially, the retailers and distributors appointed by the firms are few but later on, this marketing strategy proves to be superior. It has the following benefits:
- Better market coverage than distribution.
- Concentrated efforts on specific outlets
- More control and less cost than intensive distribution
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Answer: The efficient outcome is to have the security system installed. After the meeting the security system will <em><u>be installed</u></em>, which illustrates the <em><u>free rider problem.</u></em>
Free rider is the burden on resource which is been shared, the problem is created by its usage or over-exploitation by individual who aren't paying their fair share.
∴ Here Tom is a free rider. i.e. He is willing to pay $100 where he should've paid $250.