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You Own 100 Shares with a Market Value of $80

Question 40

Multiple Choice

You own 100 shares with a market value of $80 each. The company declares a 4-for-1 split.


A) Your total market value will be $2,000.
B) The market price will be approximately $20 per share.
C) You will own 25 shares.
D) The company will reduce its Retained Earnings by $8,000.

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