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antoniya [11.8K]
3 years ago
11

Suppose that the market price of Company A is $50 per share and that of Company B is $20. If A offers half a share of common sto

ck for each share of B, what is the percentage increase in wealth for B's shareholders?
A. -25%.
B. -20%.
C. -20%.
D. +25%.
Business
1 answer:
liubo4ka [24]3 years ago
3 0

Answer:

D) +25%.

Explanation:

If A offers 1/2 a share per 1 share of B, it means that the value of B's shares will increase from $20 to $25 (= $50 x 1/2). This $5 increase represents a 25% increase in wealth {= [($25 - $20) / $20] x 100}.

The price of the stock represents the wealth of the stockholders, since a stockholder that had 100 shares previously owned $2,000 in stocks, but as the price increases, the stockholder's wealth increases to $2,500.

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Items prohibited from sale to minors include: alcohol, tobacco, petrol, offensive weapons, intoxicating substances, and expensive jewelry.

So in this scenario since due diligence was not carried out by the store to check Heather's age on purchase, she can return the diamond bracelet and get back her money.

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Which of the following methods does not help reduce marketing risks?
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