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ABC Has 45 000 Shares of $10 Ordinary Shares Issued

Question 25

Multiple Choice

ABC has 45 000 shares of $10 ordinary shares issued. They offer a share split of 4- for- 1. The effect of the split will be:


A) market price goes to $40; total shares go to 180 000.
B) market price drops to $5; total shares stay at 45 000.
C) market price stays at $10; total shares go to 11 250.
D) market price drops to $2.50; total shares go to 180 000.

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