Immediately after the stock split, the stock price will be approximately
Your firm is planning a 2 for 1 stock split. The market price for the stock has been $84. The table below presents the equity portion of your firm's balance sheet before the split.
Common stock
Par value
(1 million shares
outstanding; $4 par value) $ 4,000,000
Paid-in capital 16,000,000
Retained earnings 30,000,000
Total equity $50,000,000
A) $42.
B) $84.
C) $2.00.
D) $8.00.
Answer: A
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