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    Corporate Finance
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    Exam 17: Payout Policy
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    Use the Information for the Question(s)below
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Use the Information for the Question(s)below

Question 2

Question 2

Multiple Choice

Use the information for the question(s) below.
Luther Industries currently has 5 million shares outstanding and its stock is currently trading at $40 per share.
-Assuming Luther issues a 5:2 stock split,then the number of shares Luther will have outstanding following the split is closest to:


A) 25.0 million.
B) 12.5 million.
C) 2.0 million.
D) 16.0 million.

Correct Answer:

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