ABC has 61,000 shares of $16.00 par common stock outstanding. ABC announces a stock split of 4-for-1. What is the effect of the split?
A) par stays at $16.00; total shares increase to 15,250
B) par drops to $8.00; total shares stay at 61,000
C) par drops to $4.00; total shares increase to 244,000
D) par goes to $64.00; total shares increase to 244,000
C
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An appraisal is valid for what length of time?
a. One year. b. Six months. c. Ninety days. d. The date stated in the report.
Which of the following is a unique feature of demand-based pricing?
A) The demand-based pricing curve nears the unit cost curve at the end of the life cycle. B) Demand-based pricing is effective for companies with an effective monopoly in their respective industries. C) Demand-based pricing can be volatile as fickle customers change their demand for the product or service. D) The prices at the decline stage are generally higher than those at any other stage in the product life cycle.