1. What would happen to investor with 100 shares of stock Y that sells for $40 a share in a two-for-one stock split?
a) He would now own 200 shares of stock Y selling for $20 each.
b) He would now own 105 shares of stock Y selling for $35 each.
c) He would now own 125 shares of stock Y selling for $25 each.
d) He would now own 150 shares of stock Y selling for $15 each.
2. A firm has the opportunity to invest in a start-up solar energy company, a new cell phone technology, or the latest in television screens. These optionsare BEST described as _____ projects.
a) replacement
b) independent
c) mutually exclusive
d) scaled back