Chapter 8 Review

Chapter 1 Review

By Marcie Borchard

Multiple Choice

Three people invest in a company at the ratio of 1:3:5 and the total investment is $72,000. How much did the third partner invest?

• $9000

• $8000

• $24,000

• $40,000

Open Ended

David owns 800 shares of GHI, Incorporated. On April 6 the corporation instituted a 5-for-2 stock split. Before the split, each share was worth $42.60.

What was the pre-split market cap? What was the post-split market cap?

This is called a _____________________.

Open Ended

Scott owns 1,200 shares of LMN Corporation. The company instituted a 1-for-10 reverse stock split on November 7. The pre-split market price per share was $1.20. Show that the split was a monetary non-event for Tyler.