1. If you have 100 shares of Google Inc. The stock is traded at $1,200. We assume that the firm will announce 10:1 stock split. What’s the total number of shares you will have after the stock split?
2. What will be the total value of your holdings of Google stock after the stock split?
a) $120,000
b) $1,200,000
c) $12,000
d) $1,200
3. A company purchased $25,000 worth of inventory. The terms of sale were 2/5, net 45. What’s the implicit interest if a buyer does not take the cash discount?
$250
$300
$500
$800