Becker Financial recently declared a 2-for-1 stock split. Prior to the split, the stock sold for $60 per share. If the firm's total market value is unchanged by the split, what will the stock price be following the split?a. $35.28b. $39.53c. $42.50d. $33.58e. $33.15

Business · College · Mon Jan 18 2021

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In a 2-for-1 stock split, each existing share is split into two shares. Since a stock split doesn't change the total market value of the company, the price of each individual share will be halved. Therefore, if the stock sold for $60 per share before the split, after the split each share will sell for $60 / 2 = $30 per share. The correct answer is not provided in the options you've listed.

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